China arrests 12 over coordinated online smear campaign targeting Xiaomi, Huawei and Li Auto EVs

CHINA: Authorities in Shandong province have arrested 12 individuals suspected of running a coordinated online operation that deliberately published defamatory and misleading content targeting electric vehicle manufacturers Xiaomi, Huawei and Li Auto.

The Yantai Public Security Bureau said the suspects were behind thousands of negative online articles and videos designed to damage the reputation of the three companies and disrupt their business operations.

According to police, the case came to light after Xiaomi, Huawei and Li Auto separately lodged reports beginning in July 2025, flagging a surge of suspicious articles circulating on an unnamed online platform.

These posts allegedly exaggerated faults, misrepresented facts and posed as genuine consumer complaints, creating the appearance of widespread dissatisfaction with the brands’ electric vehicles.

Four-Month Probe and Major Crackdown

Following the reports, a special police task force conducted a four-month investigation, reviewing more than 3,000 related articles and tracing their origins. Raids were carried out in Yantai and Liaocheng, leading to the arrest of all 12 suspects.

Police seized more than 1 million Chinese yuan (about US$142,000) in funds believed to be linked to the illegal operation and shut down over 8,000 online accounts involved in spreading the content. Authorities described the group as a new type of organised “keyboard warrior” criminal network that exploited digital platforms for profit.

Investigators found that the suspects had created large clusters of online accounts within short time frames. These accounts showed abnormal activity patterns and used IP addresses from multiple cities to mask coordination and avoid detection.

Use of AI and Traffic Monetisation

The investigation revealed that the group relied heavily on technology to scale its operation. Police said the suspects used software to crawl the internet for keywords such as “Xiaomi,” “Huawei,” and “Li Auto,” before deploying artificial intelligence tools to repeatedly generate and post similar content across platforms.

By flooding online spaces with negative articles and sensationalised videos, the suspects aimed to drive traffic and earn money through platform-based monetisation mechanisms.

 Authorities warned that such behaviour not only harms corporate reputations but also distorts public opinion and undermines trust in emerging industries.

The Yantai Public Security Bureau said it will continue to clamp down on the spread of false information online and use legal measures to safeguard China’s developing technology and electric vehicle sectors.