This month, the U.S. government out of the blue blacklisted Xiaomi from the Department of Defense over suspicions that Xiaomi was somehow connected to the People’s Liberation Army of China. The sanctions in this case prohibit US investment in Xiaomi and also force current Xiaomi shareholders to sell their securities by November of this year. The day after this high-profile decision by the US government, Xiaomi released a statement in which it clarified that it has no ties to the Chinese armed forces, and also said that it was going to take «an appropriate course of action to protect the interests» of shareholders and the company as a whole. Well, now it’s time to turn the course of action into reality: Xiaomi has filed a lawsuit against the US government.
Xiaomi sued the US Department of Defense and the US Treasury. In her statement of claim, she emphasized that she is in no way controlled by or affiliated with the Chinese government or military. The company also noted that it manufactures products and provides services intended exclusively for civilian and commercial use. It also states that Xiaomi will suffer imminent, serious and irreparable harm if the restrictions come into effect.
How the confrontation between Xiaomi and the US government will end is unclear, but many experts agree that under the new President, the practice of blacklisting Chinese companies may be reversed, just like the decision made in haste under the leadership of Donald Trump, since Xiaomi was one of the last to enter the blacklist USA. A little earlier this happened to the well-known drone manufacturer DJI. In the first days of his administration, Joe Biden already canceled many decisions of his predecessor, and it is very possible that the same fate will befall the «black list» — if not completely, then at least partially.