The US government plans to label Xiaomi a “communist Chinese military company” and has banned its products in the country. The company will not able to receive foreign investment and it is a same Executive Order according to which American companies are prohibited to make any kind of investment in the blacklisted companies in the US.

Xiaomi has started to take the legal aid and file a petition in the US Department of Defense and Treasury in the U.S. District Court in Colombia for blacklisting. The Chinese company has named Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen as defendants in the case.

Xiaomi claimed that the US blacklisting is “unconstitutional” and noted in the court filing that:

Xiaomi faces imminent, severe, and irreparable harm if the Designation remains in place and the restrictions take effect…

In place of Biden’s new administration, it is quite possible that the threat of sanctions will solve the tragedy for Huawei, Xiaomi and several other Chinese companies.