Chinese court sentences media outlet to pay millionaire fine and retract for spreading lies against new electric car division
Xiaomi’s legal department achieved a historic and record-breaking victory against the Chinese portal AutoReport, after the Chinese Justice determined that the media outlet acted deliberately to tarnish the manufacturer’s reputation and image. The court ordered the defendant to pay damages of 5 million yuan — equivalent to about R$ 3.9 million — in addition to demanding the immediate deletion of the fraudulent content and the publication of a formal retraction.
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During the trial, it was proven that the portal used multiple profiles on social networks to propagate information devoid of factual verification. According to the court, the tone adopted was openly derogatory, configuring not only a deviation from the journalistic standard, but an orchestrated attack against Xiaomi. In an official statement celebrating the decision, the brand stressed that it is open to constructive criticism and public oversight, but warned that it “will use legal weapons to defend its legitimate rights against insults and lies that confuse the market”.
The episode draws attention for setting a new precedent in the industry. While it is common for Chinese automakers to sue independent content creators, a successful lawsuit — with a fine of this magnitude — against a traditional media conglomerate is considered a milestone.
The situation still takes on the contours of corporate intrigue due to the close relations between executives in the sector. AutoReport is a platform affiliated with the giant Yiche (known globally as Bitauto), founded in 2000 by William Li, the same creator of the electric manufacturer Nio. The irony lies in the fact that Lei Jun, Xiaomi’s current CEO and founder, figured as one of Nio’s own first investors.