Xiaomi Sues US Government For Blacklisting it Over Investment Ban, Calls it ‘Unconstitutional’

Xiaomi, earlier this month, was banned by former US President-led Donald Trump government for alleged association with the Chinese military. The company denied the allegations of being affiliated with the Chinese military, and said it is not a “Communist Chinese Military Company”. Now, as the ban continues, Xiaomi has sued the US government challenging the blacklisting. The ban blocks Americans from directly investing in or buying smartphones from the Chinese tech behemoth. Xiaomi has called the ban unconstitutional. It is now seeking a court ruling to reverse the ban order. Let’s take a look at the details on the latest development of the Xiaomi ban in the US.

Xiaomi sues the US government over ban; seeks reversal of order

Xiaomi was banned by former US President Trump-led government for alleged association with the Chinese military. The company did deny the allegations. Now, Xiaomi plans to drag the US Defence and Treasury departments to the court for the “unconstitutional” ban. 

The Chinese smartphone manufacturer, in its court filing, stated that it will face “imminent, severe, and irreparable harm” if the ban and restrictions stay in place. It also said that the ban is unlawful and should be enjoined. “By failing to provide a reasoned explanation for the Designation, and by making a designation decision that necessarily runs counter to any accurate evidence before the agencies, the Departments of Defence and Treasury engaged in arbitrary and capricious decision making, in violation of the Administrative Procedure Act (“APA”), 5 U.S.C. § 706,” the court filing read.

It also said that the ban is a violation of the Fifth Amendment of the US constitution as the US government failed to provide Xiaomi with a notice of, or an opportunity to challenge the ban.

The company, earlier, had issued a statement that it has been in compliance with the law where it conducts its business. “The Company confirms that it is not owned, controlled or affiliated with the Chinese military, and is not a “Communist Chinese Military Company” defined under the NDAA. The Company will take an appropriate course of actions to protect the interests of the Company and its shareholders,” a Xiaomi spokesperson said.

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