Smartphone maker Xiaomi files legal complaint against US to protect its interests

  Xiaomi said the US decision to include the company as a "communist Chinese military company" was "factually incorrect".
Xiaomi said the US decision to include the company as a "communist Chinese military company" was "factually incorrect".PHOTO: AFP

HONG KONG (REUTERS) - Chinese smartphone maker Xiaomi Corp said on Sunday (Jan 31) that its legal complaint against the United States Department of Defence and the Treasury Department was to protect the company's interests, in a notice on the Hong Kong stock exchange.

The company filed a complaint in a Washington district court last Friday against the US Defence and Treasury Departments, seeking to remove the Chinese smartphone maker from an official list of companies with ties to China's military.

Xiaomi said the US decision to include the company as a "communist Chinese military company" was "factually incorrect", and said it had asked the courts to declare the decision illegal.

The Defence Department, under the Trump administration in mid-January, added Xiaomi and eight other companies to the list, which requires American investors to divest their holdings in the firms by a set deadline.

Xiaomi has said that 75 per cent 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.