[Asia Economy Reporter Jeong Hyunjin] Chinese company Xiaomi has filed a lawsuit in a U.S. court in response to being placed on the U.S. government's blacklist, Bloomberg News reported on the 29th (local time).
According to the report, Xiaomi filed a lawsuit on the same day at the U.S. District Court in Washington, requesting the reversal of the sanction decision against the U.S. Department of Defense and the Treasury Department. Bloomberg stated that the defendants include current Secretary of Defense Lloyd Austin and Treasury Secretary Janet Yellen.
Xiaomi pointed out that on the 14th, near the end of the Donald Trump administration, the U.S. Department of Defense placed Xiaomi on the blacklist citing connections with the Chinese military and ordered U.S. investors to divest their Xiaomi holdings by November 11. Xiaomi claimed that this sanction is "illegal and unconstitutional" and asserted that it is not controlled by the Chinese military.
Furthermore, Xiaomi emphasized that its co-founders Lin Bin and Lei Jun hold 75% of the voting rights, and that it is not controlled by any individual or group related to the Chinese military, nor are they owners. Xiaomi also stated that a significant number of its shareholders are Americans, and among the top 10 holders of Xiaomi common stock, three are U.S. institutional investment groups.
Foreign media reported that the U.S. Department of Defense and Treasury Department did not immediately respond to Xiaomi's lawsuit filing.
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