Xiaomi’s legal team announced today that a large-scale, coordinated online smear campaign targeting the company has been uncovered. Multiple suspects are now under criminal investigation by Chinese authorities. The operation, which has been active since December 2024, has reportedly intensified amid recent controversies surrounding Xiaomi’s automotive division.

According to Xiaomi, the perpetrators used automated content-generation tools to fabricate false claims and deployed nearly 10,000 social media accounts to spread defamatory posts. Tactics included rumour-mongering, inciting public hostility, and manipulating online discourse to damage Xiaomi’s image while boosting competitors.

Xiaomi founder and CEO Lei Jun shared the legal team’s statement on social media: “The internet is not a lawless zone. Xiaomi will resolutely use legal measures to protect our legitimate rights against slander and malicious attacks.”

The revelations come just days before Xiaomi’s high-profile product launch event of the YU7 SUV on May 22, and its first in-house smartphone chipset, the Xring O1. Built on a second-generation 3nm process node, the Xring O1 represents a significant R&D milestone, with over 13.5 billion yuan (1.86 billion USD) invested. Xiaomi aims to position the chip as a flagship-class alternative to offerings from industry giants.

Industry analysts note that the campaign’s timing could point to commercial motives as Xiaomi expands aggressively into the electric vehicle and semiconductor sectors. Authorities continue investigating whether competitors or commercial entities orchestrated the defamation effort.

The company’s firm legal response also comes amid a string of public controversies:

• Fatal SU7 crash: A March 29 accident in Anhui involving an SU7 sedan resulted in three fatalities after the vehicle hit a barrier and caught fire. The tragedy raised concerns over Xiaomi’s driver-assistance systems, door-lock mechanisms, and battery safety.
• SU7 Ultra’s “dual air duct” scandal: After receiving their vehicles in April, SU7 Ultra owners found the advertised “functional” carbon fibre hood ducts were purely decorative. Xiaomi apologised on May 7 and offered partial compensation, but over 400 owners rejected the offer and hired legal counsel. Regulators closed the case without finding wrongdoing, suggesting consumers pursue civil action.
• Front bumper warping complaints: Reports of warped front bumpers on early SU7 models were linked to material flaws and heat exposure. Xiaomi offers free repairs and app-based insurance claims but continues to face scrutiny over quality control.
• Horsepower lock backlash: A software update restricted the SU7 Ultra’s output to 900 hp unless owners completed a racetrack lap in “Ranking Mode.” The move drew backlash for limiting advertised performance. Xiaomi later reversed the update and pledged better transparency.