Guests wait in line at Xiaomi’s flagship store in Mong Kok, Hong Kong.
Miguel Candela | SOUP Pictures | LightRocket | Getty Images
In response, Xiaomi filed a lawsuit Friday against U.S. Treasury and defense departments in the District Court of Columbia, according to its investor relations website Sunday.
Xiaomi alleged that the Chinese military designation is “unconstitutional because it deprives Xiaomi of its freedom and property rights without due process of law” and therefore violates the Fifth Amendment to the United States Constitution.
The Chinese company also said a ban on the purchase of shares by investors would cause “irreparable damage.”
“By cutting Xiaomi from the U.S. capital markets, the designation and related restrictions will impair the company’s ability to conduct, grow and finance its business, sell its products, maintain and grow its business relationships. and recruiting and retaining employees, ”the company said.
Shares of Xiaomi rose 1.2% in Hong Kong trading at 11:46 HK / SIN.
The company also said that “it is not owned or controlled or affiliated with the Chinese government or army, nor is it owned or controlled by any entity affiliated with the Chinese defense industrial base.”
Xiaomi said any Chinese government or military entity does not have the ability “to exercise control over the management or affairs of the company.”
Huawei, which was a target of the Trump administration, has also tried to use the U.S. legal system to overturn Washington’s actions.
In March 2019, Huawei sued the U.S. over a law banning government agencies from buying equipment from the Chinese technology giant. That lawsuit was dismissed by a federal judge last year.