Xiaomi is going to sue the US for blacklisting

Former US President Donald Trump unleashed a trade war with China during his term, and it was felt mainly by Chinese technology companies. Most notably Huawei, whose smartphones lost Google applications due to a ban from the US Department of State in 2019. Even before the end of the term of office, the Trump administration blacklisted the brand Xiaomi. It is now according to the portal PhoneArena decided to defend it by legal means.

The company is on a slightly different black list than Huawei

The Chinese manufacturer was included on a slightly different black list than Huawei’s competitor, which is not under the auspices of the US Department of Commerce. In other words, Xiaomi will not become the same as what happened to Huawei. For now, it can still import its products to the US, trade with US companies, and there is no risk of losing Google services or US chips from Qualcomm.

The inclusion took place on a document created by the US Department of Defense. Quite a number of other companies also passed through this list, and it did not have any significant impact on their existence. It is the Ministry of Defense that suspects that Xiaomi is communicating more closely with the Chinese military and could be a potential danger to the United States. The irony is that Xiaomi in the US does not sell its smartphones, but rather power banks or smart bracelets Xiaomi Mi Band 5.

Xiaomi counterattacked

Of course, the Chinese manufacturer objected to this a few weeks ago, and now he wants to defend himself against this accusation in legal terms as well. He counterattacked and filed a lawsuit against the US Department of Defense and the Treasury Department yesterday. The exact content of the lawsuit is not yet known, but its aim is for the authorities to change the decision to blacklist Xiaomi, which blocks US investment in the company.

As a result of this blacklisting, all U.S. entities investing in Xiaomi must sell their stakes in the company by November 11, 2021. Investors include companies such as Vanguard, Blackoch, State Street Corporation, and even Qualcomm. The most important American investor for the Chinese manufacturer is definitely the last named Qualcomm. The current flagship Xiaomi Mi 11 was the first smartphone with the Snapdragon 888 chipset on the market.