That’s why Xiaomi terminated two regional general managers in its International Business Department. One of them even got himself not only fired, but also prosecuted.
According to Gizmochina, a credible platform for all things Far East, Chen Bingxu was previously in charge of the Latin American region. He was accused of accepting bribes, receiving lavish gifts, and enjoying extravagant entertainment funded by business partners. Yup, that’s called partying!
The other case brings up a man called Owen, the former general manager of Western Europe, allegedly created fake outsourcing deals involving large sums of money. Both individuals played key roles in Xiaomi’s overseas growth.
Xiaomi’s response has been swift and severe. Chen Bingxu was dismissed, had his stock options revoked, and is required to compensate the company for financial losses. Owen was also terminated, with legal actions initiated against him, including criminal and civil charges.
Both Latin America and Europe are important markets for Xiaomi. In Latin America, Xiaomi shipped 5.3 million units in Q1 2024, achieving a 15.3% market share and a 45% year-on-year growth, according to statistics. In Europe, Xiaomi holds the third spot with a 16% market share in Q1 2024.
Taking bribes doesn’t help!