Nasdaq-listed Chinese data firm Luokung Technology is suing the U.S. government over military-linked bans under the Trump administration that prevent ownership by American investors.
Luokung Technology filed a lawsuit in the U.S. District Court in Washington over the ban which will come into effect as soon as March 15, according to the firm which denied it was «owned or controlled» by any entity affiliated to the Chinese military.
The provider of cloud platform software, map software and maps services also claimed that it only performed commercial and civilian functions. It also noted that it was unsuccessful in learning the reason for the ban and there was no guidance on how to be removed from the list.
«A ban on investments in Luokung by US investors will not only adversely affect Luokung’s ability to obtain capital from US investors and to engage in strategic transactions with US companies, it will likewise harm Luokung’s strategic relationships with US financial institutions,» according to the lawsuit which highlighted that its chief tech officer Baomin Li was an American citizen and owners of 1 million Luokung shares.
Washington Bans Under Biden
Washington under the Joe Biden administration continues to express its willingness to act tough against China with regards to its usage of the U.S. financial system.
Deputy Treasury secretary nominee Wally Adeyemo said that he was open to making use of investment bans introduced under former President Donald Trump.
Dozens of major Chinese firms have been blacklisted including oil firm CNOOC Limited, chip maker SMIC, smartphone giant Xiaomi and three of hte mainland’s largest telecom providers – China Mobile, China Telecom and China Unicom – which will look to challenge their delisting from the New York Stock Exchange.
