Customers wait in line at Xiaomi’s flagship store in Mong Kok, Hong Kong.
Miguel Candela | SOPA Images | LightRocket | Getty Images
In response, Xiaomi filed a lawsuit against U.S. Treasury and Defense Departments in Columbia District Court on Friday, according to the Investor Relations website.
Xiaomi claims that the Chinese military designation is “unconstitutional because it deprives Xiaomi of its freedom and property rights without due process of law” and thus violates the fifth amendment of the US Constitution.
The Chinese company also said the ban on investors buying shares would cause ‘irreparable damage’.
“By shutting down Xiaomi from the US capital market, the designation and related restrictions will affect the business’s ability to operate, grow, finance, sell its products, maintain and grow its business relationships, and recruit and retain employees, “the company said in a lawsuit. said.
Xiaomi shares rose 1.2% in Hong Kong trading at 11:46 a.m. Hong Kong.
The company also said it “is not owned or controlled by, or otherwise affiliated with, the Chinese government or military, or that it is owned or controlled by any entity affiliated with the Chinese defense industry base.”
Xiaomi said any Chinese government or military entity did not have the ability to “exercise control over the management or affairs of the company.”
Huawei, which was a target under the Trump administration, also tried to use the US legal system to stop actions taken by Washington.
In March 2019, Huawei sued the US over a law banning government agencies from buying the equipment of the Chinese technology giant. That lawsuit was dismissed by a federal judge last year.