China based firms that were previously targeted by the ban imposed by the Trump administration are now considering filing lawsuits against the US government. This news arrives after a federal judge suspended a similar ban earlier this month, which was imposed on Xiaomi.

According to a Reuters report, lawyers close the matter with a few of the blacklisted Chinese companies are in talks with various law firms like Steptoe & Johnson and Hogan Lovells. These firms are eyeing a lawsuit after US District Judge Rudolph Contreras’s preliminary order halted the inclusion of Chinese tech giant, Xiaomi, on the list of companies that allegedly have ties to the Chinese military. For those unaware, these blacklisted firms faced an investment ban in the US.

As per Wendy Wysong, managing partner of the Hong Kong office of Steptoe & Johnson, “Companies are reaching out to lawyers to challenge the listings and the grounds for the listings.” However, Wysong and sources close to the matter from Hogan Lovells have declined to name the companies involved in discussions. Notably, the process for including companies in the investment ban has been called “deeply flawed” by Contreras.

This is due to blacklisted companies on two key criteria, which is its development of 5G technology  and artificial intelligence. The latter is what the Defense Department alleges are “essential to modern military operations.” Washington lawyer Brian Egan stated that “The facts that led to Xiaomi’s designation are almost laughable, and I think it absolutely is going to lead to additional companies seeking relief.”

RELATED:

• Xiaomi to launch several new productions in few weeks, including Mi 11 Ultra and entry level 5G phone
• Xiaomi turns to MediaTek for smartphones chips as Qualcomm suffers from 5G chip shortage: Report
• Xiaomi Mi 11X Pro may be a rebadged Redmi K40 Pro+; the K40 Pro may not launch globally

The post Xiaomi win against Trump ban prompts lawsuits from other blacklisted Chinese firms: Report appeared first on Gizmochina.

UPDATE:

With regards to this incident, Xiaomi has released an official statement. It reiterates that it has no affiliation with the Chinese military and that it was looking into the potential implications of the matter.

“The Company has been in compliance with law and operating in compliance with the relevant laws and regulations of jurisdictions where it conducts its businesses. The Company reiterates that it provides products and services for civilian and commercial use. 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. The Company will take appropriate course of actions to protect the interests of the Company and its shareholders.

The Company is reviewing the potential consequences of this to develop a fuller understanding of its impact on the Group. The Company will make further announcements as and when appropriate.”

It remains to be seen how this affects the company and its products in the future. But in the short term, it likely doesn’t have any direct implications on existing Xiaomi users.

Original Story below.

Now that Huawei is effectively out of the picture, the Trump administration has set its eyes on the next big Chinese smartphone maker, Xiaomi. On Thursday, the US administration added nine companies to its blacklist of companies with ties to the Chinese military, which includes the world’s third-largest smartphone maker, Xiaomi.

Following this move, US investors can no longer invest in the companies added to this special blacklist. They are barred from purchasing shares and securities of companies like Xiaomi who are a part of this list and will have to divest their existing holdings in them by Nov. 11, 2021, Reuter reports.

Unfortunately, so far the Trump administration has not given any proof as to how Xiaomi or other companies are tied to the Chinese military. Blacklisting Xiaomi was very sudden and quite unexpected given how Xiaomi is essentially a smartphone and electronics company. Before this move, the Trump administration was focused on blacklisting companies from crucial industries like telecommunications (Huawei) and Semiconductor technology (SMIC). Currently, the US has blacklisted over 60 Chinese companies which include the world’s largest drone maker DJI and China’s top semiconductor firm SMIC.

However, it’s worth noting that this blacklist is different from the US Entity List. So unlike Huawei or even DJI, Xiaomi still can import US technology without a license, at least for now.

It’s also quite possible that the Biden administration that’s all set to take power from January 20 overturns this decision. However, until then, it remains to be seen how Xiaomi and other Chinese companies react to this sudden blacklisting.

RELATED: 

• US Govt adds DJI to Entity List; DJI says users can continue to buy its products
• United States adds China-based chipmaker SMIC to the Entity List
• Huawei plans to have more than 300 million devices running HarmonyOS in 2021

The post [UPDATE: Response] US government blacklists Xiaomi and 8 other Chinese companies appeared first on Gizmochina.