Chinese Tech Giant Xiaomi Takes US State to Court

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The Chinese technology company Xiaomi, best known to us for its smartphones, is filing a lawsuit in contradiction of the US Departments of Defense and Finance.

The company believes the Americans unfairly blacklisted it in January.

Xiaomi calls the blacklist ‘unconstitutional’ and wants a judge to reverse the decision. The lawsuit also reveals that US Defense Ministers Lloyd Austin and Treasury Janet Yellen are defendants.

The tech company says the decision will lead to “imminent, serious and irreparable harm if the designation remains in effect and restrictions take effect,” Columbia court documents said.

According to the United States, Xiaomi, the third-largest smartphone maker globally, has ties with the Chinese military. The military blacklist forced American investors to give up their interests in the company.

Under President Donald Trump, the United States took a tough stance against Asian companies, reportedly on the grounds of national security.

The large Chinese oil company CNOOC also entered the entity list. This was due to the South China Sea conflict, where many other countries besides China claim parts of the sea. CNOOC is conducting drilling in that area, which, according to the Americans, amounted to “reckless and bellicose behaviour.”

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