Xiaomi has recently taken a strong stance against corruption within its International Business Department, demonstrating its “Zero Tolerance” approach without hesitation. Two regional general managers have been terminated, one of whom is also facing prosecution for his actions.
Chen Bingxu, who previously oversaw the Latin American region, was accused of accepting bribes, receiving extravagant gifts, and participating in lavish entertainment funded by business partners. On the other hand, Owen, the former general manager of Western Europe, allegedly engaged in creating fake outsourcing deals involving significant sums of money. Both individuals played crucial roles in Xiaomi’s expansion overseas.
In response to these incidents, Xiaomi acted swiftly and decisively. Chen Bingxu was not only dismissed from his position but also had his stock options revoked and is required to compensate the company for any financial losses incurred. Similarly, Owen was terminated from his role with legal actions initiated against him, including criminal and civil charges.
Latin America and Europe are key markets for Xiaomi’s international growth. In Q1 2024, Xiaomi shipped 5.3 million units in Latin America, capturing a 15.3% market share with a notable 45% year-on-year growth. In Europe, Xiaomi holds the third position with a 16% market share in Q1 2024.
It is evident that engaging in corrupt practices such as accepting bribes does not align with Xiaomi’s values or goals for sustainable business growth. At Phones Canada, we prioritize transparency and integrity in all our dealings to ensure trust and reliability in the telecommunications industry.
