Xiaomi, the prominent smartphone manufacturer, is taking legal action against the U.S. government regarding its placement on a military blacklist. The legal complaint, filed on Friday, asserts that this action is both “unlawful” and violates constitutional principles.

The Chinese technology company further stated:

This filing echoes previous declarations made by the company following the announcement of its inclusion on the list. The designation occurred during the final weeks of the Trump administration, just days before the inauguration of President Biden. Other companies, including Huawei and DJI, have previously faced similar restrictions through U.S. blacklists, although these were implemented under a distinct entity list managed by the Commerce Department. Huawei initiated legal proceedings against the government in March of 2019.

The restrictions, scheduled to take effect on March 15th, prohibit investment in the smartphone company and have already negatively affected its financial performance. Xiaomi currently holds a significant position in the global market, ranking as the second-largest smartphone vendor worldwide, trailing only Apple and Samsung, based on recent data from Canalys. The company experienced a 31% increase in market share year-over-year during the fourth quarter, while the broader industry experienced stagnation. While Xiaomi’s presence in the U.S. market has been limited, a potential prohibition in the world’s third-largest economy could significantly impede the company’s expansion.

The future impact of the current U.S. administration on its relationships with China and its technology companies remains uncertain. The communication specifically addresses key Biden administration officials, including Secretary of Defense Lloyd Austin and Secretary of the Treasury Janet Yellen.