Xiaomi sues U.S. to overturn Chinese military designation and share investment ban

In response, Xiaomi filed a lawsuit on Friday in opposition to the U.S. treasury and protection departments within the district courtroom of Columbia, in accordance to its investor relations web site on Sunday.

Xiaomi alleged that the Chinese military designation is “unconstitutional because it deprives Xiaomi of its liberty and property rights without due process of law” and due to this fact violates the Fifth Amendment of the U.S Constitution.

The Chinese firm additionally mentioned the ban on buyers shopping for shares will trigger “irreparable harm.”

“By cutting off Xiaomi from U.S. capital markets, the Designation and related restrictions will damage the company’s ability to conduct, grow and finance its business, sell its products, maintain and grow its business relationships, and recruit and retain employees,” the corporate’s lawsuit mentioned.

Xiaomi shares had been up 1.2% in Hong Kong commerce at 11:46am HK /SIN time.

The firm additionally mentioned that it’s “not owned or controlled by, or otherwise affiliated with the Chinese government or military, or owned or controlled by any entity affiliated with the Chinese defense industrial base.”

Xiaomi mentioned any Chinese authorities or military entity would not posses the power “to exert control over the management or affairs of the company.”

Huawei, which was a goal underneath the Trump administration, has additionally tried to use the U.S. authorized system to overturn actions taken by Washington.

In March 2019, Huawei sued the U.S. over a law that banned government agencies from shopping for the Chinese expertise large’s tools. That lawsuit was rejected by a federal decide final 12 months.