BEIJING: Xiaomi Corp sued the US Defense and Treasury departments, challenging a blacklisting that blocks American investors from buying the Chinese smartphone giant’s securities.
Beijing-based Xiaomi called the blacklisting “unconstitutional” and seeks a court ruling to reverse the designation, which was made in the waning days of the Trump administration. Under former President Donald Trump, the US had targeted scores of Chinese tech companies citing national security. Huawei Technologies Co, one of the biggest rivals to Xiaomi in smartphone market, was cut off from its key suppliers as a result of a series of restrictions imposed by the former administration.
BlackRock Inc, the Vanguard Group Inc and State Street Corp are among the top American institutional investors in Xiaomi that would be forced to divest holdings in the company by November, according to the filing.