Chinese company Xiaomi has filed a lawsuit against the US government this year, challenging the Trump administration’s decision to remove Xiaomi Corp from the list of US stock exchanges and global benchmarks, calling it a Chinese Communist military company.
Science and technology: Xiaomi will be removed from the US blacklist
An agreement was made between Xiaomi Corp and the US government under which the US agreed to exclude Xiaomi from the blacklist. With this, the ban on US investment in this Chinese phone maker was lifted. Chinese company Xiaomi has filed a lawsuit against the US government this year, challenging the Trump administration’s decision to remove Xiaomi Corp from the list of US stock exchanges and global benchmarks, calling it a Chinese Communist military company. Xiaomi has yet to respond to this. The parties to the dispute are negotiating certain conditions and will file a joint petition before May 20.
According to White House National Security Council spokeswoman Emily Horn, the US concerns are about investments in companies with ties to the Chinese military. The Biden government has also pledged to keep the pressure on these companies. Shaomi’s Hong Kong stock jumped 6.7% on Wednesday due to the developments. Besides smartphones, Xiaomi, a company that makes robot vacuums, electric bicycles and wearing gear, says it is not affiliated with the Chinese military. This is a big victory for the Chinese company as there has been a dispute between the two countries on issues ranging from trade to human rights and governance of Hong Kong.
Trump issued an order in November 2020, which banned US investments in companies associated with the Chinese military. The motive was to pressure China for its alleged flawed trade policies. This order was issued by the Trump administration on the move. These include BiteDance Limited, Ticketock and the WeChat-owned company Tencent Holdings Limited. Huawei technology has the worst impact. The company was banned from purchasing components in the United States, forcing it to shut down its infrastructure projects around the world. Although the restrictions on Xiaomi have been lifted, there are signs that the Biden government also wants to keep the pressure on China. That same week, the Biden government re-enacted a 2019 order banning U.S. companies from using equipment made by companies such as Huawei because it threatens national security. Meanwhile, the US Parliament highlights the ever-growing need for a bipartisan law that will not only enhance the US rivalry in high-value technology and construction, but also to counter China aggressively.