Ukraine Accuses Xiaomi of Becoming a War Supporting State

iwanrj.com – Jakarta – In the midst of ongoing tensions between Russia and Ukraine, Ukraine recently said that Xiaomi became a sponsor of an international war event.

As is well known, currently the war between Russia and Ukraine is still unfinished and no progress has been made between the two towards peace, and has had both countries suffer adverse effects.

The Ukrainian state is now on the verge of collapse because of this conflict, and Russia is facing isolation from the rest of the world and global corporations, which causes a significant economic downturn. On the other hand, various companies also suffered losses due to this war.

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Now the name Xiaomi is suddenly “involved” or rather involved in the conflict between Russia and Ukraine, with serious accusations made by Ukraine.

The National Corruption Prevention Agency of Ukraine (NAZK) announced that Xiaomi was added to the list of companies that are sponsors of international wars, reports Gizmochina.

The Ukrainian government gave two main reasons for this accusation. Ukraine claims that Xiaomi remains active in the Russian market and is a brand smartphones leaders in the country since the conflict between the two countries began.

Although, Xiaomi has not carried out a marketing campaign since last spring 2022, but the Chinese tech giant still holds a significant market share in Russia.

Since 2018, Xiaomi has been leading sales on line in Russia, as well as having a wide-spread network of authorized retail stores. The latest NAZK data reveals that Xiaomi’s market share in Russia doubles in 2022.

According to the latest data released by NAZK reveals that Xiaomi’s 3rd quarter shipments in Russia increased by 39 percent, and the company’s revenue broke up to $202 million.

According to a press release from Ukraine it is said that the decision to include Xiaomi in the list of international war sponsors was based on Xiaomi continuing activities in Russia after the full-scale invasion.

Despite the negative accusations, Xiaomi remains the leading smartphone brand in Russia. The company has consistently ranked first in sales in Russian online stores since 2018, and maintains an extensive network of official offline stores across the region.

In 2022, Xiaomi doubles its market share in Russia, strengthening its position as the country’s leading smartphone brand. And in July 2022, Xiaomi and its sub-brand Poco controlled 42% share of the smartphone market in Russia which made it number one in terms of revenue.

Since it earned $202 million in revenue, the National Anti-Corruption Bureau of Ukraine claims that the taxes Xiaomi pays on that income have been used to support the Russian military and fund the war against Ukraine.

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Furthermore, Xiaomi is actively continuing the recruitment of employees in offices located in Russia and launching its flagship smartphones, which shows the company’s intention to support Russia.

On the basis of all this, Ukraine later accused Xiaomi of supporting international wars and believed that the Chinese company would face reputational and legal consequences.

Currently, the National Anti-Corruption Bureau of Ukraine has included 21 companies in the list of international war sponsors. Xiaomi’s inclusion in the list of war-supporting countries surprised many.

This is because the broad effects caused by the ongoing conflict between the two countries on the global technology industry will be affected. [FY/HBS]