Clients wait around in line at Xiaomi’s flagship shop in Mong Kok, Hong Kong.

Miguel Candela | SOPA Images | LightRocket | Getty Pictures

In reaction, Xiaomi filed a lawsuit on Friday in opposition to the U.S. treasury and defense departments in the district courtroom of Columbia, according to its investor relations web site on Sunday.

Xiaomi alleged that the Chinese military designation is “unconstitutional since it deprives Xiaomi of its liberty and residence legal rights devoid of owing approach of legislation” and consequently violates the Fifth Amendment of the U.S Constitution.

The Chinese firm also mentioned the ban on traders obtaining shares will bring about “irreparable damage.”

“By reducing off Xiaomi from U.S. cash markets, the Designation and related constraints will problems the firm’s potential to conduct, grow and finance its business enterprise, provide its goods, maintain and grow its small business associations, and recruit and keep employees,” the firm’s lawsuit said.

Xiaomi shares were being up 1.2% in Hong Kong trade at 11:46am HK /SIN time.

The business also reported that it is “not owned or managed by, or otherwise affiliated with the Chinese governing administration or armed service, or owned or controlled by any entity affiliated with the Chinese defense industrial base.”

Xiaomi reported any Chinese government or army entity doesn’t posses the capability “to exert regulate around the administration or affairs of the corporation.”

Huawei, which was a target below the Trump administration, has also experimented with to use the U.S. legal process to overturn actions taken by Washington.

In March 2019, Huawei sued the U.S. over a regulation that banned authorities organizations from shopping for the Chinese¬†technology giant’s devices. That lawsuit was turned down by a federal decide past yr.

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