Xiaomi denies ties to China’s army, calls US ruling “unconstitutional”

Xiaomi denies ties to China’s military, calls US ruling “unconstitutional”

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One of many Trump administration’s final acts in mid-January was to declare Chinese language smartphone maker Xiaomi a “Communist Chinese language army firm.” The ruling from the Division of Protection (which is totally different from the Division of Commerce’s export ban towards Huawei) bans US residents from holding Xiaomi inventory or different investments beginning March 15, 2021. This weekend, Xiaomi posted a response to the ruling, which got here within the type of authorized complaints to the US Protection and Treasury Departments.

Xiaomi’s criticism is now addressed to the brand new Biden-appointed Protection and Treasury secretaries, saying the choice was “factually incorrect and has disadvantaged the corporate of authorized due course of.” Xiaomi calls the ruling “illegal and unconstitutional,” denies being managed by the Chinese language army, and wish to see the choice reversed.

As Reuters studies, Xiaomi says {that a} “substantial quantity” of its traders are US residents—together with three of the highest ten shareholders of abnormal shares—and that the ruling would trigger “fast and irreparable hurt to Xiaomi.” The corporate continues, “Furthermore, the general public affiliation of Xiaomi with the Chinese language army will considerably impair the corporate’s standing with enterprise companions and customers, inflicting reputational harms that can not be readily quantified or simply repaired.”

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