Xiaomi Wants To Clear Its Name From US Accusations Of Being A "Chinese Communist Military Company"

JAKARTA - Xiaomi Corp wants to clear the name of its company after a United States (US) court suspended a ban on investment in Xiaomi. Previously, the US Department of Defense and Finance banned investors from investing in Xiaomi.

The US District Court has decided to reject the ban imposed by the US government on Xiaomi. US investors are prohibited from owning shares in smartphone companies due to allegations that Xiaomi has close ties to the Chinese military.

"Xiaomi believes that the (US Department of Defense) decision to accuse it of being the 'Chinese Communist Military Company' is arbitrary, and the judges agree with that," said a Xiaomi spokesman as summarized by Voi from SCMP.

"Xiaomi plans to ask the court to decide that the allegations violate the law and delete the allegations permanently," he added.

The Chinese company sued the US Department of Defense in January. Xiaomi is working to overturn the ban imposed during the Trump administration.

In his verdict, US District Judge Rudolph Contreras in Washington stated that "the defendants have not yet made a (report) case regarding the importance of national security at stake here."

For Xiaomi, this is a risky bet as the company has to fill the void left by Huawei Technologies Co. due to US sanctions and forced to leave the global smartphone market.

"Xiaomi reiterates that the company is widely held, publicly traded and managed independently to offer electronic products to consumers and solely for civil and commercial use," a Xiaomi spokesperson added in a statement.