The ongoing Xiaomi/US saga is quickly intensifying. Chinese phone-maker Xiaomi has been blacklisted in the waning days of the Trump administration. The Pentagon has convinced the US authorities that Xiaomi has close ties with the Chinese military industry. Thus, many investors stopped investing in the tech company.

Xiaomi did not expect such a turn of events, especially before the change of power in the United States. "It is not owned or controlled by, or otherwise affiliated with the Chinese government or military, or owned or controlled by any entity affiliated with the Chinese defense industrial base. Nor does the Chinese government or military, or any entity affiliated with the defense industrial base, possess the ability to exert control over the management or affairs of the company," the company said. This is why it considers claims of the US government to be unlawful and unfair.

As nothing has changed after this statement, Xiaomi has filed a lawsuit against US government officials Janet Yellen, the Treasury Secretary, and Lloyd Austin, the US Defense Secretary, demanding its removal from the blacklist. Notably, Trump's anti-China rhetoric has been a hallmark of his presidency. Perhaps, the new government will take a softer stance on Chinese companies.

Now, Xiaomi is facing severe financial losses. The Chinese company also noted that the ban on the acquisition of its shares would cause "irreparable harm". "If Xiaomi loses access to US capital, the company will not be able to fully conduct, develop and finance its business, maintain business relationships, and hire employees," the lawsuit says. The smartphone maker has once again denied that it has any association with the People's Liberation Army.