The Chinese telecommunications and internet group Xiaomi has filed an appeal against the ban in the United States, in what was one of the last acts of the Trump administration, just before President Joe Biden took over on January 20. Xiaomi an Internet company with smartphones and smart devices interconnected by an Internet of Things (IoT) platform. Xiaomi is currently the third largest smartphone brand in the world and has created the largest consumer IoT platform with 289.5 million smart devices connected to it, excluding smartphones and laptops. Xiaomi products are present in over 90 markets around the world, including Italy. In August 2020, the company entered the Fortune Global 500 for the second time, ranking 422, gaining 46 positions from the previous year. It also ranked 7th among Internet companies on the list. Xiaomi a component of Hang Seng Index, Hang Seng China Enterprises Index and Hang Seng TECH Index.
On January 14, 202 a press release issued by the US Department of Defense stated that Xiomi was included in the 1999 National Defense Authorization Act (“NDAA”) list – basically a Black List that blocks Xiaomi’s business in United States. The Company announced on January 15, 2021 that it would take appropriate action to protect the interests of the Company and its shareholders. On January 29, 2021 (US time), the Company filed a lawsuit in the United States District Court for the District of Columbia against the US Department of Defense and the US Department of the Treasury. Xiaomi believes that the decision to consider it as a “Chinese Communist Military Society” under the NDAA, by the Department of Defense and the United States Department of the Treasury (the “Decision”), is factually incorrect and has deprived the Company of due process. In practice, the company denies that it is in any way connected to the Chinese government or to the military apparatus of Beijing. In order to protect the interests of the company’s users, partners, employees and global shareholders, Xiaomi has asked the courts to declare the Decision illegal and to revoke it. The Company will keep shareholders and its potential investors informed of any further relevant developments in connection with the proceeding through further announcements as and when it deems appropriate. Shareholders and potential investors are advised to exercise caution in dealing with the Company’s securities.
As of the date of this announcement, the Board consisting of Lei Jun, as Chairman and Executive Director, Lin Bin, as Vice-Chairman and Executive Director, Chew Shou Zi, as Executive Director, Liu Qin, as Non-executive Director, and by Chen Dongsheng, Tong Wai Cheung Timothy and Wong Shun Tak, as Independent Non-executive Directors.