Xiaomi Corp tries to wiggle out of U.S. Entity List, files legal complaint against Defense & Treasury Dept

Xiaomi Corp has filed a complaint in a district court in Washington against the U.S. Treasury and Defense Departments, in an attempt to wiggle out of the U.S. Entity list. The Trump Administration has added select Chinese companies to a trade black list after its assessment that they are either owned or controlled or have ties to Chinese military.

The Trump administration’s move requires American investors to divest their holdings in the Chinese firms by a set deadline.

In its complaint to Biden-appointed Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen, Xiaomi termed the U.S. assessment as “unlawful and unconstitutional” saying it was not controlled by the People’s Liberation army. Notably, Xiaomi did not mention or clarify whether it is controlled or has ties to the Chinese military.

 “The company’s strategic relationships with U.S. financial institutions – critical for Xiaomi to continue to access the capital it needs to continue to grow in a highly competitive market – will be significantly damaged,” said the Chinese firm in its complaint.

It also mentioned “Moreover, the public association of Xiaomi with the Chinese military will significantly impair the company’s standing with business partners and consumers, causing reputational harms that cannot be readily quantified or easily repaired.”

Neither the U.S. Department of Defense or the Treasury Department immediately responded to requests for comments.

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