SHANGHAI (CHINA) – China’s Xiaomi Corp filed a complaint in a Washington district court on Friday against the US Defense and Treasury Departments, which are seeking to remove the smartphone manufacturing firm from an official list of companies having ties to the Chinese military.
The Defense Department, under the Trump administration in mid-January, added Xiaomi and eight other companies to the list, which requires American investors to divest their holdings in the firms by a set deadline.
In the complaint, addressed to Biden-appointed Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen, Xiaomi called the judgment “unlawful and unconstitutional” and said the company was not controlled by the People’s Liberation army.
It added that the investment restrictions, which go into effect on March 15, 2020, would cause “immediate and irreparable harm to Xiaomi.”
Xiaomi said 75% of the company’s voting rights, under a weighted structure, were held by co-founders Lin Bin and Lei Jun, with no ownership or control from an individual or entity affiliated with the military.
It added that a “substantial number” of its shareholders were US persons, and noted three of its top-ten holders of ordinary shares were US institutional investment groups.
“The company’s strategic relationships with US financial