Customers are waiting in line at Xiaomi’s flagship store in Mong Kok, Hong Kong.
Miguel Candela | Images SOUP | LightRocket | Getty Images
In response, Xiaomi filed a lawsuit against the US Treasury and Defense Departments in a district court in Columbia on Friday, according to its investor relations website on Sunday.
Xiaomi has argued that the Chinese military designation is “unconstitutional because it concerns Xiaomi’s freedom and property rights without proper legal process” and therefore violates the Fifth Amendment to the US Constitution.
The Chinese company also said that banning investors from buying shares will cause “irreparable damage”.
“By cutting Xiaomi from the US capital markets, the designation and related restrictions will affect the company’s ability to operate, grow and finance its business, sell its products, and and maintain and develop business relationships and recruit and retain employees, ”the company’s process said.
Xiaomi shares rose 1.2% in Hong Kong trading at 11:46 HK / SIN.
The company also said that “it is not owned or controlled by or affiliated in any way with the Chinese government or military or is not owned or controlled by any entity affiliated with the Chinese Defense Industrial Base.”
Xiaomi said that any Chinese government or military entity does not have the ability to “exercise control over the company’s management or business.”
Huawei, which was a target under the Trump administration, also tried to use the US legal system to overturn Washington’s actions.
In March 2019, Huawei sued the United States for a law banning government agencies from buying equipment from the Chinese technology giant. The lawsuit was rejected by a federal judge last year.