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Chinese EV Giant Nio Takes Legal Action Against Online Defamation as Government Launches Industry Crackdown
Chinese electric vehicle manufacturer Nio announced Friday it has initiated legal proceedings against several social media accounts accused of spreading false information about the company, aligning itself with a new government campaign targeting online misconduct in China’s automotive industry.
The company’s statement, published on the Chinese social media platform Weibo, expressed firm support for the enforcement initiative launched on September 10 by six Chinese government agencies, including the Ministry of Industry and Information Technology and the Cyberspace Administration of China.
“We firmly support and actively cooperate with the special enforcement campaign,” Nio stated. The government initiative specifically targets defamation of automakers and their products, along with the use of artificial intelligence to create and disseminate false content.
Nio claims it has long been subjected to “malicious attacks and defamation” by individuals and online accounts. The company specifically named user Dong Bin, operator of the account ‘BelieveDB,’ alleging he has “continuously and intensively” posted false statements about Nio and its customers since 2023.
According to Nio, a Chinese court recently ruled against Dong, ordering him to cease infringing activities, issue a public apology, and pay compensation for damages. The company presented this ruling as evidence of authorities’ commitment to regulating China’s online environment and maintaining fairness in the industry.
The EV maker also accused a WeChat account called ‘Roadside News Agency’ of spreading rumors about its capital market activities using “AI-generated false information” that was widely circulated across social media platforms, “seriously damaging” Nio’s reputation and market environment.
“Nio will resolutely pursue legal action and hold the responsible parties accountable,” the company stated. “We will not tolerate any malicious attacks, smear campaigns, or paid online trolling targeting Nio or its users.”
This action comes just weeks after Nio’s founder and CEO William Li called for stronger measures against organized online attacks during an appearance on state broadcaster CCTV Finance’s Economic Half-Hour program. Li claimed these orchestrated smear campaigns, known in the industry as “black PR” operations, are damaging China’s automotive sector.
The program featured executives from other prominent Chinese automakers, including Changan Automobile, XPeng Motors, and smartphone giant Xiaomi, which recently entered the EV market. Their participation underscores growing industry-wide concern over what Chinese companies call “black water armies” – coordinated groups that allegedly conduct smear campaigns against competitors.
The timing of Nio’s announcement is notable, coming amid volatility in the company’s stock following a lawsuit filed by Singapore’s sovereign wealth fund GIC in U.S. courts. The lawsuit accuses Nio of inflating revenue figures by more than $600 million. After initially dropping 7% on Thursday, Nio’s U.S.-listed shares recovered to close 0.15% higher.
In response to the lawsuit, Nio stated the matter “is not a newly occurring incident, nor is it directed at Nio’s recent operational performance.”
The government crackdown on online misconduct comes at a critical juncture for China’s EV industry, which faces increasing domestic competition and international trade barriers. As one of China’s most prominent EV manufacturers, Nio has been working to expand its global presence while solidifying its position in the fiercely competitive home market.
Industry analysts suggest that controlling the online narrative has become increasingly important for Chinese automakers as they battle for market share in the world’s largest electric vehicle market, where consumer sentiment can shift rapidly based on social media discourse.
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7 Comments
As the EV market grows, it’s understandable that companies would want to crack down on false information that could mislead consumers. Nio seems justified in taking legal action against specific bad actors spreading disinformation.
It’s concerning to hear about the ‘malicious attacks and defamation’ Nio has faced. Online trolling and disinformation can really undermine public confidence. Kudos to Nio for working with authorities to address this issue head-on.
Agreed. Maintaining transparency and accountability in the EV industry is paramount as it continues to evolve rapidly. Proactive steps like this from Nio should help foster more trust with consumers.
This is a tricky balance – freedom of speech versus protecting companies from false claims. I hope Nio and the authorities can find an approach that addresses genuine concerns without stifling healthy debate.
That’s a fair point. Maintaining that balance will be critical. Reasonable people can disagree, but outright defamation shouldn’t be tolerated. Curious to see how Nio navigates this moving forward.
The Chinese government’s crackdown on automotive industry misinformation is an interesting development. I’m curious to see how it plays out and impacts public discourse around EVs and other emerging vehicle technologies.
Glad to see Nio taking legal action against online misinformation. Maintaining public trust is critical for EV automakers as the industry continues growing. Cracking down on false content is a sensible move to protect consumers.