The US Govt has targeted Xiaomi by adding it to the Military Blacklist. It will be effective from 11th November 2021. This means investors in the country should divest themselves from the blacklisted firms by the said deadline. Xiaomi released a statement to this, saying that it has no relations with the Chinese Military.
Today, according to the latest news, Reuters reported that the company has gone a step ahead and filed a legal complaint. The report conveys Xiaomi has filed a legal complaint in a Washington district court against the U.S Dept. of Defense and Treasury. Precisely, Secretary Janet Yellen, Xiaomi, calling the judgment of adding Xiaomi to the Military Blacklist as “unlawful and unconstitutional”.
Like its previous statement, Xiaomi again stated that it is not controlled by the People’s Liberation Army of China. It should be noted that when the US Govt. took the decision, it did not give any proof as to how the world’s third-largest smartphone maker is associated with the Chinese Military.
The statement says that 75% of the company’s voting rights are with co-founders Lin Bin and Lei Jun. Xiaomi’s statement adds that the supposed “public association” with the military if existed, will only damage the company’s reputation with its partners. Xiaomi also said that a significant number of its shareholders are from the U.S whose strategic relationship is critical to growing in a competitive market.
It should be noted that unlike its Chinese counterparts Huawei and DJI, Xiaomi can still import U.S technology without a license. The company said an immediate restriction on investment would cause irreparable harm to the company. It would be interesting to see how the US Govt responds to this in the coming days.