The US government is trying to brand Xiaomi as a “Communist Chinese military company” and has banned its products in the country. This blacklisting would bar foreign companies from investing in Xiaomi and it is part of the same Executive Order from November that prohibits American companies from putting capital into blacklisted companies.
In response, Xiaomi has now filed a lawsuit against the U.S. Defense and Treasury departments against the blacklisting in the US district court of Colombia. The Chinese company has appointed Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen as the defendants in this case.
Xiaomi claimed that the US blacklisting is “unconstitutional” and noted in the court filing that:
Xiaomi faces imminent, severe, and irreparable harm if the Designation remains in place and the restrictions take effect…
Huawei has also been under the same blacklist for almost 2 years. However, the US ban on Huawei is much more severe as it bans all American companies or any companies using American technology from doing any sort of business with Huawei. This resulted in Huawei losing support for Google apps and services in its Mobile Phones as well as supply constraints for Mobile chipsets.
With the new Biden administration in place, it is possible that the tragedy will be resolved for Huawei, Xiaomi, and several other Chinese companies under the threat of the ban.