The news he sees is fifteen days ago Xiaomi embroiled in a US power game that is truly unbelievable. Poco before Biden's inauguration in the White House, in fact, the electronics giant was included by the old Trump administration within a blacklist. To clarify the dynamics of this matter, we have created an ad hoc article for understand the differences between this ban and that of Huawei. Fifteen days after the aforementioned ban, the company has decided to sue the American court for request the illegality of this block. Let's go see the details.
UPDATE AT THE END OF THE ARTICLE - 13/03/2021
Xiaomi is not satisfied with the ban imposed by Trump and asks the Biden administration to revoke the imposition of two weeks ago: what will be the results of the request?
The news comes directly from the South China Morning Post and Bloomberg, a thick portal specializing in news from China and all over the East. According to what was revealed Xiaomi allegedly sued the US defense and treasury departments appointing administration defense secretary Biden Lloyd Austin and treasury secretary Janet Yellen as defendants. At the time, the US Department of Defense had admitted that the Chinese company was one of them companies affiliated with the Chinese People's Liberation Army.
Xiaomi faces imminent, serious and irreparable damage if the Designation remains in effect and the restrictions go into effect. Xiaomi is not owned, controlled or otherwise affiliated with the Chinese government or military, nor is it owned or controlled by any entity affiliated with the Chinese Defense Industrial Base
It is read from an official document
This news comes in the aftermath of what the tech giant al third place on the world rankings of those companies that sold and shipped the most in 2020. You can understand for yourself what side effect the non-cancellation of the aforementioned ban for the coffers of the colossus. However, there is no need to worry about the fate of the users. Xiaomi herself has stated that in case of a negative outcome she is ready for a plan B. Unfortunately at the moment we are not aware of the details on this plan, but we will not fail to inform you as soon as we know something.
UPDATE 1
The company has decided to express itself, through a Press release official, about the lawsuit against the USA. We report what the brand wrote:
In connection with the press release issued by the US Department of Defense on January 14, 2021 (US time) stating that the Company has been listed under the National Defense Authorization Act ("NDAA”) Of 1999, pursuant to article 1237, the Company announced on January 15, 2021 that it would take appropriate action to protect the interests of the Company and its shareholders.
On January 29, 2021 (US time), the Company filed a lawsuit in the United States District Court for the District of Columbia against the US Department of Defense and the US Department of the Treasury. The Company believes that the decision to treat the Company as a "Communist Chinese Military Company" under the NDAA by the US Department of Defense and the US Treasury Department (the "Decision"), Is factually incorrect and has deprived the Company of a fair trial. In order to protect the interests of the Company's users, partners, employees and global shareholders, the Company has asked the courts to declare the Decision illegal and to revoke it.
Official release
From what we can read, therefore, the brand is willing to "solve the situation" but as long as everything happens through a due process. This clearly disregards the evidence that, according to our information, they do not exist. This is precisely the reason why Xiaomi asked to revoke this unfair decision, taken a few days after the inauguration of the new American President Biden.
We remind you that the appeal, in which the courts are asked to declare the decision illegal and to revoke it, was presented by Xiaomi in order to protect not only its interests but also those of users, partners, employees and shareholders.
UPDATE 2
After more than a month we know precisely why Xiaomi was included in the famous Blacklists by former President Trump. To announce it is the Wall Street Journal which states that the reason comes from a recognition that the Chinese government gave to CEO Lei Jun. The CEO and founder of the company received the award of "Outstanding builder of socialism with Chinese characteristics"In 2019 from Ministry of Industry and Information.
However, it is an award that has nothing to do withChinese People's Liberation Army (otherwise said PLA). Indeed, having socialist characteristics, as the title of the honor reads, does not imply anything that the former US administration said. The award, together with Xiaomi's ambitious investment plans in advanced technologies such as 5G and artificial intelligence, it was enough for the Department of Defense to add Xiaomi to the list of companies that support the military in question.
At the moment nothing has been communicated by the brand. Await news.
UPDATE - 13/03/2021
Finally some positive news. The US court supports Xiaomi and it goes against the Department of Defense. As reported by Bloomberg this morning, a Washington federal judge himself opposed to the decision of the Department of Defense US to limit American investments in the Chinese company. United States District Judge Rudolph Contreras has temporarily suspended the ban, supporting Xiaomi, who claimed the move was "stubborn and capricious" and deprived the company of its rights.
Contreras said Xiaomi will likely receive one complete lifting of the ban during the course of the case and issued an initial injunction to prevent "irreparable damage" from being inflicted on the company. Xiaomi said it intends to continue asking the court to declare the company's fictitious relationship with the Chinese military illegal.
Undoubtedly positive news that will have very important economic implications. To see which ones we have to wait for though. We attach the official press release:
Xiaomi is pleased to note that on March 12 the Court ordered an injunction from the US Department of Defense to prevent the implementation or enforcement of Xiaomi's designation as a CCMC. In accordance with the ruling granted, the Court completely and with immediate effect canceled the restriction of Executive Order 13959 which prohibited US companies from purchasing Xiaomi's shares and the obligation to sell their shareholdings..
Xiaomi once again reiterates that it is a widely controlled, publicly traded and well managed company independent which offers consumer electronics products exclusively for civil and commercial use. Xiaomi also believes that the decision to designate it as a Chinese Communist military company is arbitrary and unreasonable, and the court is of the same opinion. In any case, Xiaomi intends to continue asking for the illegality of the designation and its permanent revocation.
