Xiaomi was designated a CCMC in January, one of the final acts by Donald Trump’s outgoing administration. A 1999 law requires the Defense Department to compile a…
Xiaomi was designated a CCMC in January, one of the final acts by Donald Trump’s outgoing administration. A 1999 law requires the Defense Department to compile a catalog of companies owned or controlled by the People’s Liberation Army. The Pentagon has added 35 companies so far, including Huawei and the Semiconductor Manufacturing International Corporation (SMIC). Its addition to the list meant Xiaomi was subject to an investment ban that prohibits U.S. companies purchasing its securities or derivatives of those securities. It also forces American investors to divest their holdings on November 11,2021. In February, Xiaomi sued the U.S. government over the designation, claiming it is “unconstitutional because it deprives Xiaomi of its liberty and property rights without due process of law,” thereby violating the Fifth Amendment.
