Xiaomi sues US government over 'Communist Chinese military company' designation

midian182

Posts: 7,072   +62
Staff member
What just happened? Xiaomi is suing the US government after Donald Trump's administration designated the firm a 'Communist Chinese military company' and placed it on a blacklist that could force US investors to divest. The smartphone giant was one of nine Chinese companies added to the Pentagon blacklist on January 15, just days before Joe Biden's inauguration.

A 1999 law requires the Defense Department to compile a catalog of companies owned or controlled by the People's Liberation Army. The Pentagon has added 35 names so far, including chipmaker SMIC and Huawei.

Companies placed on the list are subject to an executive order from November 2020 that prohibits Americans from trading or investing in the firms. It also orders Americans with holdings to sell their stakes within one year.

On Friday, Xiaomi responded by filing a lawsuit against the US treasury and defense departments in the district court of Columbia. It claims that the designation is "unconstitutional because it deprives Xiaomi of its liberty and property rights without due process of law." As such, it violates the US Constitution's Fifth Amendment. Xiaomi also claims the investment ban will inflict "irreparable harm" on the company.

"By cutting off Xiaomi from US capital markets, the Designation and related restrictions will damage the company's ability to conduct, grow and finance its business, sell its products, maintain and grow its business relationships, and recruit and retain employees," reads the lawsuit. The firm's stock has fallen by up to 14 percent since being added to the list.

Xiaomi has repeatedly denied any association with the Chinese government or military. "The company confirms that it is not owned, controlled, or affiliated with the Chinese military, and is not a 'Communist Chinese military company' defined under the NDAA," it said.

Xiaomi had the third-highest number of smartphone shipments in Q4 (43.3 million). It also saw the largest year-on-year increase (32 percent). Huawei, which is on the same blacklist and the US Commerce Department's 'entity list,' saw its YoY phone shipments fall 42.4 percent.

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Hexic

Posts: 1,029   +1,514
TechSpot Elite
As expected, it's just a matter of time, if you can't compete with them, block them. :(

Pretty sure that's the opposite reason why we'd block a communist nation state with a confirmed track record of running espionage through every "private" company they have total control over.

Or we can try and say that they're not a security threat, it's all a conspiracy by big business, we should be friends instead, and the US government just doesn't want competition on hardware they don't produce.
 

Uncle Al

Posts: 8,167   +6,924
Watching the "60 minutes" report last night on Chinese illegally obtaining the DNA of every person around the world and the companies within the USA that choose to share their DNA data I don't think there is anything that China can say, do, or promise that I would every believe. Mind you, it's' not the people, it's the government and until that is overthrown for a more democratic form of Govt. I simply would not trust them.
 

QuantumPhysics

Posts: 5,218   +5,916
If America thinks that they can simply throw sanctions on China like they've done to cripple Cuba, Venezuela, Iran and North Korea, they will quickly find out just how much power China has throughout Asia, South East Asia, Africa and South America.
 

QuantumPhysics

Posts: 5,218   +5,916
Watching the "60 minutes" report last night on Chinese illegally obtaining the DNA of every person around the world and the companies within the USA that choose to share their DNA data I don't think there is anything that China can say, do, or promise that I would every believe. Mind you, it's' not the people, it's the government and until that is overthrown for a more democratic form of Govt. I simply would not trust them.


The Chinese people have ALWAYS had a form of patriarch or monarch. They have always had a totalitarian form of government. They don't want a Democracy.

Furthermore, America isn't a democracy. It's a Republic.

I believe after the Chinese watched the news clippings of America is chaos throughout the year of 2020, they certainly prefer to stay exactly the way they are. Afterall, their progress forward is measurable. How's America doing?

Trillions more in debt?

Social Media channels corrupting the stock market?

Incivility among political lines, races, ethnic groups and genders?

The American experiment is going bankrupt while they are pocketing USD in exchange for $500 70" Televisions.
 

Hexic

Posts: 1,029   +1,514
TechSpot Elite
The Chinese people have ALWAYS had a form of patriarch or monarch. They have always had a totalitarian form of government. They don't want a Democracy.

Furthermore, America isn't a democracy. It's a Republic.

I believe after the Chinese watched the news clippings of America is chaos throughout the year of 2020, they certainly prefer to stay exactly the way they are. Afterall, their progress forward is measurable. How's America doing?

Trillions more in debt?

Social Media channels corrupting the stock market?

Incivility among political lines, races, ethnic groups and genders?

The American experiment is going bankrupt while they are pocketing USD in exchange for $500 70" Televisions.

The thought process that the Chinese do not want a democracy is a fallacy - there is a giant difference between wanting representation, and being silenced, controlled, and manipulated to look contrary. If you control what your population thinks, they are convinced that your system is superior. Citizenry control.

America is a representative republic, which is a hybrid of democracy and republic. We are a unique hybrid of both.

Anyone who watched America's news in the last year wouldn't want that happening in their country. Be mindful, the media that the Chinese citizenship were PERMITTED to watch was the specific, cherry-picked media allowed to be viewed by the CCP because it frames the evil USA as if their system is in shambles; which is exactly what they want their citizens to continue to believe. Citizenry control, not free will.

Discourse in first world countries is how root issues are resolved. I would much rather encounter this as a learning and growing experience, instead of the CCP stopping by my house and making me disappear overnight because I said something that the "establishment" doesn't approve of.

If your idea of an ideal society is a dystopian 1984, then China is perfect for you. They didn't build themselves up to be what they are in the modern era; they were allowed to flourish by the rest of the world who all value freedom instead.
 

SirDigby

Posts: 835   +643
TechSpot Elite
100% agree that Xiaomi should be blocked as an untrusted entity given the data practices held by the Chinese Gov, but I find it regrettable because the Xiaomi products are actually really decent, if only they were a legit company.... What's OnePlus like, because they're owned by Oppo, aren't they both HQd in China?
 

psycros

Posts: 3,558   +4,336
What "property" has Xiamoi lost by being called what it is - a company whose majority shareholder is the CCP? They have no manufacturing or retail assets in America.
 

BadThad

Posts: 615   +656
If America thinks that they can simply throw sanctions on China like they've done to cripple Cuba, Venezuela, Iran and North Korea, they will quickly find out just how much power China has throughout Asia, South East Asia, Africa and South America.

So, you're saying we need to bow down, accept the Chinese penis and like it? NO THANKS COMMRADE!
 

Reehahs

Posts: 1,262   +929
The thought process that the Chinese do not want a democracy is a fallacy - there is a giant difference between wanting representation, and being silenced, controlled, and manipulated to look contrary. If you control what your population thinks, they are convinced that your system is superior. Citizenry control.

America is a representative republic, which is a hybrid of democracy and republic. We are a unique hybrid of both.

Anyone who watched America's news in the last year wouldn't want that happening in their country. Be mindful, the media that the Chinese citizenship were PERMITTED to watch was the specific, cherry-picked media allowed to be viewed by the CCP because it frames the evil USA as if their system is in shambles; which is exactly what they want their citizens to continue to believe. Citizenry control, not free will.

Discourse in first world countries is how root issues are resolved. I would much rather encounter this as a learning and growing experience, instead of the CCP stopping by my house and making me disappear overnight because I said something that the "establishment" doesn't approve of.

If your idea of an ideal society is a dystopian 1984, then China is perfect for you. They didn't build themselves up to be what they are in the modern era; they were allowed to flourish by the rest of the world who all value freedom instead.

Look up the mandate of heaven, that is more ingrained in average Chinese person with Confucianism.
 

Danny101

Posts: 1,827   +790
Laughable that Xiaomi, a foreign entity, has rights in America. Do American companies and Americans have rights in China? GTFO Xiaomi.
 

Reehahs

Posts: 1,262   +929
100% agree that Xiaomi should be blocked as an untrusted entity given the data practices held by the Chinese Gov, but I find it regrettable because the Xiaomi products are actually really decent, if only they were a legit company.... What's OnePlus like, because they're owned by Oppo, aren't they both HQd in China?

By that logic every multinational corporation who deals in your data out to be banned and sanctioned.

Laughable that Xiaomi, a foreign entity, has rights in America. Do American companies and Americans have rights in China? GTFO Xiaomi.

American companies have the same rights as any other foreign company in China. Out of world citizens, Americans and American corporations have the most rights as the US will invade and obliterate anyone who stands in the way of their interests.
 
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