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%.