Xiaomi intends to defend itself against Washington. While the Chinese manufacturer was recently placed on the “black list” of the American administration, its management has just shifted the fight to the legal field by taking legal action against the American authorities. These had added Xiaomi to the list of companies supporting the Chinese military-industrial complex and posing a danger to the security of the United States last January.
In his complaint, the management of Xiaomi argues that this addition to the “black list” of the United States causes “immediate and irreparable damage”, in particular by cutting off access to the American capital markets. The management of the Chinese manufacturer also explains that these restrictions would interfere with the commercial relations of the company and its ability to conduct and develop its activities, and that they would damage its reputation with its business partners and consumers, both in States -United than in the rest of the world.
It is difficult to contradict the Xiaomi staff on this point, particularly in view of the difficulties encountered by other Chinese giants, such as ZTE or Huawei, since their own registration on the Washington “black list”. As a reminder, the companies appearing on this list have been the subject since last November of a decree which prohibits American nationals from negotiating and investing with them. Consequence: it will be impossible for an American national to buy Xiaomi titles from March 15.
A political entry?
Taking up the defense of Huawei, the management of Xiaomi also indicates in its complaint that its placement on the Washington “blacklist” was done on a political basis and is not motivated by concrete facts. While Washington accuses it of collusion with the Beijing regime, the manufacturer indicates that more than 75% of its voting rights are held by its co-founders Lei Jun and Bin Lin and that American funds like BlackRock and The Vanguard Group are part of its shareholders.
Xiaomi’s complaint follows the publication last month of a statement from the manufacturer’s management claiming that it has nothing to do with Chinese authorities. In this open letter, the Chinese telecommunications giant reaffirmed that it was not a “Chinese Communist military enterprise”, as suggested by the White House, in the midst of a trade war with China. The manufacturer added “to operate in accordance with the relevant laws and regulations of the jurisdictions where it conducts its activities”, as explained by its management, after its registration on the “black list” of Washington.
In this “black list” are other Chinese companies such as Advanced Micro-Fabrication Equipment, Luokong Technology, Beijing Zhongguancun Development Investment Center, Gowin Semiconductor, Grand China Aie, Global Tone Communication, China National Aviation Holding company or Commercial Aircraft Corporation. of China. Other Chinese companies that were already on the list included Huawei, Hikvision, Inspur, Panda Electronics, and Semiconductor Manufacturing International Corporation.
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