The Chinese technology company Xiaomi has filed a lawsuit against the Defense and Treasury departments of U.S for having included it in a black list of companies with supposed ties to the Chinese Army, according to the official press of the Asian country today.
Xiaomi thus joins other Chinese technology companies such as ByteDance -developer of TikTok- or Huawei, which have also filed lawsuits against the US government after being sanctioned for Washington during the years of the recently ended Trump Administration.
In the middle of the month, the US included the company on the list of companies considered by Washington to be controlled by the Chinese Armed Forces. According to a decree signed by the now-former President Donald Trump, US investors will have to get rid of their stakes in those companies. The list also includes Huawei, the video surveillance equipment manufacturer Hikvision, the chip producer SMIC, the aircraft manufacturer Comac and several state companies from key sectors such as nuclear, energy or telecommunications.
The intention of the Department of Defense, which described these firms as “military companies of communist China”, was “to counter the strategy of military-civil merger” of PekÃn, which supposedly tries to modernize the military capabilities of the Asian country with technology and knowledge obtained by “companies, universities and research programs that appear to be civil entities.”
In a statement published on the 15th, Xiaomi assured that it has always complied with the laws of the countries in which it operates and that he was going to study measures to “protect the interests of the company and its shareholders.” “The company reiterates that it provides products and services for civil and commercial uses, and confirms that it is neither owned nor controlled or affiliated with the Chinese Army,” the document said.
According to experts cited by the nationalist newspaper Global Times, Xiaomi’s initiative will encourage other companies to take legal action against the sanctions imposed by Washington since Trump’s stage in power has already ended.
Risk rating agencies such as S&P pointed out after knowing the inclusion of Xiaomi in the blacklist that this situation should not have a more than “modest” impact on the technology, which enjoys a “healthy” liquidity level and a ” broad investor base “and that it had recently raised more than $ 3.9 billion from the issuance of new stocks and convertible bonds.
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