Chinese companies subject to a total investment ban imposed by former US President Donald Trump are considering suing the US government after Xiaomi has been successful in its efforts to that end.
Recall that on Friday, U.S. District Judge Rudolph Contreras backed Xiaomi by barring the Department of Defense from restricting U.S. investment in the Chinese smartphone maker. At the same time, American investors retained the right to buy Xiaomi securities. After that, the company’s shares soared 10%, and the company’s market value rose to $8.2 billion.
Several blacklisted Chinese companies are in talks with various law firms such as Steptoe & Johnson and Hogan Lovells, Reuters reported. Before Donald Trump left the presidency of the United States, the Department of Defense blacklisted several Chinese manufacturers of companies allegedly associated with the Chinese military. As a result, companies faced a ban on investment.
According to Wendy Wysong, managing partner at Steptoe & Johnson’s Hong Kong office, «Chinese companies are turning to lawyers to challenge their illegal blacklisting.» However, Weissong and sources at Hogan Lovells declined to name specific companies involved in the discussions.
These companies have been listed to develop 5G and artificial intelligence technologies that the US Department of Defense says are «essential for modern military operations.» Brian Egan, a Washington lawyer, said these facts presented by the Department are laughable: » I think this will definitely lead other companies to follow Xiaomi’s lead.»