Within just a few days under the Biden administration, Xiaomi filed a lawsuit against the U.S. Defense and Treasury departments, naming Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen as defendants for being included into the Military blacklist.

In a report by Bloomberg, Xiaomi said that the blacklisting is unconstitutional and that it “faces imminent, severe, and irreparable harm if the Designation remains in place and the restrictions take effect.” If the military blacklist pushes through, American investors like BlackRock Inc., the Vanguard Group Inc., State Street Corp., and even Qualcomm will be forced to divest their holdings in Xiaomi by November. As an immediate effect, Xiaomi’s dropped by 12% in January.

Because of the military blacklist, Xiaomi also released a statement, insisting that they are not associated with the Chinese military. “Xiaomi is not owned or controlled or otherwise affiliated with the Chinese government or military, nor is it owned or controlled by any entity affiliated with the Chinese defense industrial base,” Xiaomi said in their statement.

This adds another interesting twist to the Xiaomi-US saga, as they are one of the many companies that were targeted by former US President Donald Trump, citing issues in national security. Aside from the well-known case against Huawei, other companies like TikTok, WeChat, ZTE, and DJI have been targeted by the Trump administration.

We will have to wait and see whether the Xiaomi lawsuit will help the current Biden Administration change its mind regarding the military blacklist.