However, with a new administration taking over, Xiaomi seems hopeful that the order issued by the previous administration’s is repealed. The company has also taken legal recourse and has now sued the US Government and asserts that the outgoing administrations’ assertions are untrue.
Xiaomi has filed a lawsuit with the U.S district court of Columbia that challenges the blacklist and has termed the blacklisting “unconstitutional”. The lawsuit also names Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen as defendants.
Xiaomi adds that once the restrictions go into effect on March 15, 2021, it will cause “immediate and irreparable harm to Xiaomi, and will effectively snap Xiaomi’s access to U.S. capital markets”, This, according to the company, will interfere with their business relationships and affect their ability to conduct and expand its business.
The company also made a voluntary announcement about the litigation where it states that the decision to include the Xiaomi as a “Communist Chinese Military Company” was factually incorrect and that the lawsuit is its way of protecting the interests of its users, partners, employees and shareholders.
It will be interesting to see if the court does grant some relief to Xiaomi. What also remains to be seen is if the new Biden administration works to rectify the situation. As of now, though, the decision to sue the US Government will only elevate the tensions between the US and China.