33.1 C
Delhi

Xiaomi Corporation files legal complaint against the US ban

Chinese multinational electronics company Xiaomi Corporation has filed a complaint against the U.S. Defense and Treasury Departments in a Washington district court on Friday, seeking to remove its name from an official list of companies with ties to China’s military.

Under the Trump administration in mid-January, the Defence Department added Xiaomi and eight other firms to a list of companies allegedly having ties with the Chinese military. The companies listed will see American investors remove their holdings in the firms by a set deadline.

According to Reuters’ report, in the complaint, addressed to Biden-appointed Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen, Xiaomi said the company was not controlled by the People’s Liberation Army and called the judgment “unlawful and unconstitutional”. It added that the investment restrictions, which go into effect on March 15, 2020, would cause “immediate and irreparable harm to Xiaomi.”

Xiaomi said that under a weighted structure, 75% of the company’s voting rights were held by co-founder Lin Bin and co-founder and CEO of the company, Lei Jun, with no ownership or control from an individual or entity affiliated with the military.

- Advertisement -TechnoSports-Ad

The Beijing-based company added that a “substantial number” of its shareholders were U.S. based, and pointed out that three of its top-ten holders of ordinary shares were U.S. institutional investment groups.

“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,” the complaint stated.

“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.”

- Advertisement -TechnoSports-Ad

There have been no comments made by the U.S. Department of Defense and the Treasury Department yet related to the matter.

SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

TechnoSports-Ad

Popular

TechnoSports-Ad

Related Stories

More from author

Top 10 Richest Football Club Owners in the World in 2024

Football, one of the most popular sports with an estimated 4 billion fans worldwide, is not just a sport anymore but has also turned...

Top 5 players with the most goals for Indian national football team

Football is still a sport that is on the rise in India, with it still finding its feet among the public, though in recent...

Top 10 Most Popular Sports in the World in 2024

Here we bring to you the Top 10 Most popular sports in the world From our early childhood years when we take sports very seriously...

Top 10 Semiconductor Foundries of The World in 2023

Know the Top 10 Semiconductor Foundries in the world here as of 2023 A semiconductor foundry, also known as a fab or se­miconductor fabrication plant,...