XiaomiThe well-known smartphone maker is taking a strong stance against corruption by sacking two regional general managers in its international business division.

Fighting corruption: Xiaomi sends big signal by expelling regional leaders

Chen Bingxia, the former CEO of the Latin America region, was accused of soliciting bribes, receiving expensive gifts and lavish entertainment financed by business partners, according to a report by Sina Technology.

Owen, the former CEO of Western Europe, is said to have fabricated outsourcing deals involving significant sums of money. Both executives are reportedly key figures in encouraging Xiaomi’s expansion abroad.

Xiaomi took a decisive step. Chen Bingxiu was fired, stripped of his stock options, and reportedly ordered to compensate the company for its financial losses. In Owen’s case, not only was he fired, but the company filed a lawsuit against him seeking both criminal charges and civil damages.

The company’s zero-tolerance approach to corruption sends a clear message to employees around the world. This is particularly notable given the timing; While Xiaomi is currently battling Samsung and Apple for market dominance in Europe, Latin America represents a promising growth opportunity. The loss of key regional leaders due to unscrupulous behavior could have significantly hindered Xiaomi’s progress.

Looking at Latin America, the Canalys report shows that Xiaomi shipped 5.3 million units in the first quarter of 2024, taking a 15.3% market share. This represents an impressive 45% year-over-year growth for the company. In the European market, Xiaomi ranked third with a respectable market share of 16% in the first quarter of 2024.