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Xiaomi sues the U.S. to be removed from the blacklist

Miguel A. Rodriguez
Miguel A. Rodriguez
01 February 2021
Xiaomi sues the U.S. after Chinese military ties designation, and share investment ban

One of the largest high-tech Chinese companies has sued the U.S. as it seeks to be removed from the blacklist of alleged companies with ties with the military companies. The blacklisting prevents American investors from buying shares of Xiaomi.

The U.S. government's decision means that Xiaomi is subject to the former U.S. President Donald Trump's executive order signed in November.

From Xiaomi's point of view, the designation is "unconstitutional because it deprives Xiaomi of its liberty and property rights without due process of law and therefore violates the Fifth Amendment of the U.S Constitution."

This is not the first time when Xiaomi is trying to overrule a governmental decision. In 2019, it sued the U.S. over a law that banned government agencies from buying equipment from it. But the trial was dismissed in 2020 by a federal judge.

Following the news, during the Hong Kong trading hours, Xiaomi stock price gained 1.2%.


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.