Xiaomi files a complaint against the US after being banned from the country

 

 

 

Two weeks after being banned from American territory, the Chinese manufacturer Xiaomi retaliates and files a complaint.

Smartphones, computers, scooters, or even drones and connected speakers, Xiaomi is multiplying high-tech products and the company must now count without the investments of the American market. But society does not intend to let it go.

 

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A complaint against the United States Defense and Treasury

Reuters reports that Xiaomi has filed a complaint against the United States Department of Treasury and Defense.

According to Xiaomi, the restriction imposed by the US government is illegal and unconstitutional. The company claims that it is not associated with the Chinese Communist Party.

Recall that last month, the US administration added the company Xiaomi to its blacklist banning US investments in its favor, due to a suspected affiliation with Xi Jinping's party. In other words, US officials are concerned that Xiaomi is collecting too much data from US users on behalf of its government. In addition, for the US administration, Xiaomi's income would contribute to China's military development.

The US government believes that Xiaomi does not respect its trade rules and asks American companies to stop all investments, which will be considered illegal from March 15.

 

 

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Xiaomi put down

For Xiaomi, the consequences of this decision would cause irreparable damage. The complainant explains that three of its main shareholders are American. Without the support of the latter, the company would be undermined on a particularly competitive ground.

Xiaomi adds that associating its image with the Chinese military greatly affects its economic relations as well as its reputation with consumers. The company claims to be 75% owned by the two co-founders Lin Bin and Lei Jun and that none of the shareholders is linked to a Chinese military organization.

Huawei or ZTE have also borne the brunt of this trade war initiated by the presidency of Donald Trump's government. While Joe Biden's arrival at the White House is seen as a relief for some, there is no indication that he will pursue a different trade policy.

However, unlike Huawei, Xiaomi does not have network equipment that could potentially raise concerns about espionage problems or undermine the 5G market in the United States. This could be enough for the United States to backtrack ... To be continued therefore.

 

Source : Reuters