Published: Tue, February 02, 2021
Tech | By

Xiaomi Sues Treasury, Defense Departments Over Designation as Chinese Military Company

Xiaomi Sues Treasury, Defense Departments Over Designation as Chinese Military Company

Once the investment restrictions take effect in March, Xiaomi expects them to "cause immediate and irreparable harm" to the company by cutting off its access to USA markets and "interfering with the company's business relationships". "Xiaomi would not be subject to these harms but for Defendants' unlawful designation of Xiaomi as a" Chinese military company, it said. As a result, United States companies can no longer provide them with technology if they have the license to do so.

Before leaving the White House after what can only be described as a dividing one term, the former U.S. president, Donald Trump took one last shot at China and banned investors from buying shares in quite a few companies and apps with headquarters in China.

In any case, Xiaomi has been pointing out that the company is not affiliated or co-owned by any individual or group that has links with the Chinese military. Xiaomi in its reply said, "The Company has been in compliance with law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses".

Xiaomi's chairman, Lei Jun, advised potential shareholders and investors to be careful when trading the company's stock. Xiaomi reiterated that the company is not owned, controlled, or affiliated with the Chinese government or the military or other agencies associated with the Chinese defense sector. Chinese chipmaking giant Semiconductor Manufacturing International Corp, Shenzhen-based drone maker SZ DJI Technology Co are also among the companies that have been blacklisted. Currently, devices like the OnePlus 8T can provide up to 65-watt charging through cables.

The true objective is to cut the ground from under China's feet in its competition with the U.S. by throttling Chinese high-tech companies and institutes. A title that would qualify it to fall under the administration's Executive Order from November that bars American securities and investment companies from putting capital in said companies. After selling off its Honor sub-brand, Huawei is reportedly looking to exit the flagship segment of the handset market.

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