Chinese smartphone giant Xiaomi is challenging investment bans imposed by the last U.S. administration by filing a legal complaint through American courts.
Xiaomi has filed a complaint in a Washington district court, according to a notice, against the U.S. and Treasury Departments with the aim of seeking removal from an official blacklist of firms with ties to the Chinese military.
According to Xiaomi, it is «factually incorrect» for Washington to include the firm as a «communist Chinese military company», adding that no evidence was presented to back the claims and it is now asking U.S. courts to declare the decision as illegal.
Sanction Reversals
If successful, Xiaomi will be the second major firm to challenge sanctions imposed by the previous administration under ex-President Donald Trump.
State Street Global Advisors was the first after it reversed a decision to remove banned stocks from the renowned Tracker Fund following signals from prominent current and former Hong Kong officials of a potential manager change.
Separately, Xiaomi is also in a joint venture with AMTD for its licensed Hong Kong virtual lender «Airstar Bank» which officially launched in June last year.
