Chinese tech companies blacklisted in the United States are wary of Xiaomi’s victory – Business

Chinese tech companies blacklisted in the United States are wary of Xiaomi's victory - Business

Recently, Xiaomi was able to “counter” one of Donald Trump’s final executive orders at the end of his mandate, which saw him defend the United States as a potential risk of affiliation with the Communist Party and the Chinese military. The department was blacklisted. The following week, the Chinese manufacturer won a maiden victory, albeit a temporary one, with the court agreeing with its arguments that the decision was “arbitrary and frightening”.

That victory, celebrated by Xiaomi, is being closely monitored by the remaining Chinese companies that are on the blacklist and are considering suing the United States government to show their current position, Reuters Suspend in the same way. Without mentioning the names, the lawyers associated with the case say that some companies are exposing their complaints to law firms like Stepto & Johnson and Hogan Lovells to move forward with similar measures to Xiaomi.

“The arguments that put Xiaomi on the list are almost comical and I think it would bring relief to other companies,” says Brian Egan, a former White House and State Department adviser.

Judge Rudolf Contreras, who said that Xiaomi is correct, is based on the Defense Department’s argument that the development of 5G technology and artificial intelligence is “essential in modern military operations”. And the manufacturer’s founder and leader Lei Jun received an award from an organization that is allegedly helping the Chinese government overcome barriers between the commercial and military sectors. The judge says that both technologies are becoming the standard in consumer electronics and more than 500 entrepreneurs have received the award since 2004, like Lei Jun.

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Despite the judge’s decision, the government is yet to decide what direction to take in the Xiaomi case. In total, Donald Trump’s latest executive order included 44 companies in black stripes, including Hikvision, China National Offshore Oil Corp (CNOOC) and China’s top chipmaker, Semiconductor Manufacturing International Corp. A mapping company, Luokung Technology Corp., also sued the US government earlier this month.

Sarah Gracie

About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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