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Xiaomi filed a legal complaint against the Pentagon


Xiaomi, the world's third-largest smartphone vendor, filed a legal complaint in a Washington district court on Friday against the Pentagon and the U.S. Treasury Department.

The Chinese manufacturer of smart devices is seeking to remove it from the official list of companies with ties to the Chinese military.

Under the Trump administration in mid-January, the Pentagon added Shumi and eight other companies to the list, requiring U.S. investors to withdraw their investments in those companies by a specific deadline.

The company complained to Biden's Secretary of Defense, Lloyd Austin, and Treasury Secretary Janet Yellen.

The government has also taken measures to ensure that the government's decision sits on the basis of the law and the law.

She said the company was not under the control of the Plan, and the investment restrictions, which come into effect on March 15, 2020, cause immediate damage that Xiaomi could not repair.

The technology company indicated that it was not owned, controlled, or controlled by the Chinese Government or the Chinese military, nor was it owned or controlled by any entity of the Chinese defense industrial base.

The company explained that 75 percent of the company's voting rights are owned by co-founders Lin Bin and Lei Jun, without ownership or control from an army individual or entity.

She added that a large number of its shareholders were American people, with U.S. investors constituting the third largest group of Sarumi shareholders.

The complaint against the Pentagon and the U.S. Treasury Department states that the company's strategic relationships with U.S. financial institutions -- critical to Xiaomi's continued access to the capital it needs to continue to grow in a highly competitive market -- could be severely damaged.

 Furthermore, Xiaomi's general association with the Chinese military significantly affects the company's standing with business partners and consumers, causing reputational damage that cannot be easily identifiable or repaired.

Unlike China's leading 5G networking Huawei, Xiaomi focuses solely on consumer products, such as smartphones and smart home appliances.

Source :https://www.reuters.com/article/xiaomi-complaint-idUSL1N2K501B