In the complaint, addressed to Biden-appointed Defense
Secretary Lloyd Austin and Treasury Secretary Janet Yellen, Xiaomi called the
judgment "unlawful and unconstitutional" and said the company was not
controlled by the People's Liberation army.
It added that the investment restrictions, which go into
effect on March 15, 2020, would cause "immediate and irreparable harm to
Xiaomi."
Xiaomi said 75% of the company's voting rights, under a
weighted structure, were held by co-founders Lin Bin and Lei Jun, with no
ownership or control from an individual or entity affiliated with the military.
It added that a "substantial number" of its
shareholders were U.S. persons, and noted three of its top-ten holders of
ordinary shares were U.S. institutional investment groups.
"The company’s strategic relationships with U.S.
financial institutions - critical for Xiaomi to continue to access the capital
it needs to continue to grow in a highly competitive market - will be
significantly damaged," the complaint stated.
"Moreover, the public association of Xiaomi with the
Chinese military will significantly impair the company’s standing with business
partners and consumers, causing reputational harms that cannot be readily
quantified or easily repaired."
The U.S. Department of Defense and the Treasury Department
did not immediately respond to requests for comment.
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