“The company has filed a lawsuit in the US District Court against the Department of Defense and the US Treasury on January 29, 2021,” Xiaomi said in a statement.
It believes that the decision to list the company as a + Chinese Communist Military Company + (…) is incorrect and deprived the company of due legal procedures.
It adds that in order to protect the interests of its users, partners, employees and shareholders, it demanded that the decision be declared unlawful and repealed.
Just six days before the end of Donald Trump’s term, the US administration has released a series of ads targeting Chinese smartphone maker Xiaomi, as well as the popular video platform TikTok and oil giant CNOOC.
The action marked the final four-year investigation of diplomatic tensions between Beijing and Washington under Donald Trump.
Xiaomi, which overtook Apple to become the world’s third largest smartphone maker in 2020, is one of nine Chinese companies blacklisted. The Trump administration accused her of having ties to the Chinese military.
This action means that US investors cannot purchase Xiaomi securities and will even have to get rid of them.
Xiaomi shares fell on the Hong Kong Stock Exchange.
