Xiaomi has announced that it has taken legal action to overturn the United States’ decision to place the Chinese firm on a blacklist aimed at depriving it of its American investors.
In mid-January, Xiaomi was blacklisted by the United States. It was indeed one of the last actions taken by the administration of Donald Trump before the latter ceded power to new President Joe Biden.
This is obviously bad news for the Chinese firm, but remember that the restrictions imposed on it are less severe than those which have hampered Huawei since 2019. Indeed, for the moment, Xiaomi risks losing its investors Americans, but can still continue to collaborate with companies across the Atlantic.
A luxury that Huawei does not enjoy, deprived of Google services on its devices and severely hampered in its relations with component suppliers.
Xiaomi wants to do battle before the judges
However, Xiaomi prefers prevention than cure. And before the situation worsened, the company decided to counter-attack through the courts. In a statement, the group states the following.
The company filed a suit in the United States District Court for the District of Columbia against the United States Department of Defense and the United States Department of the Treasury on January 29, 2021 (Eastern Standard Time).
As a reminder, the United States considers that Xiaomi the other companies on the same list – TikTok is one of them – are “Chinese communist military companies“. In other words, they would maintain too close links with the regime in place in Beijing.
An “incorrect” decision
This sanction was put in place by the United States under the National Defense Authorization Act (NDAA), a series of laws governing the Department of Defense in the country. This decision “was incorrect and deprived the company of due process“Regrets Xiaomi.
« In order to protect the interests of its users, partners, employees and shareholders[…], the company pleaded with the courts to have the ruling declared illegal and overturned“, We read in the press release.