Xiaomi and Huawei executives engage in a war of words.

The exchange between China's two largest tech companies is taking place against the backdrop of fierce competition in the electric vehicle sector, where supply far exceeds demand.

Yu Chengdong and Lei Jun. Photo: QQ News .

On June 1st, Lei Jun, CEO of Xiaomi, posted a quote from writer Mo Yan on his social media account: "Slander is also a form of admiration." This seemingly lighthearted statement was actually a response to Huawei CEO Yu Chengdong, after the latter heavily criticized Xiaomi at a conference.

Lei Jun was absent from the Future Car Pioneer conference on May 31st. There, Yu Chengdong made several statements that were considered attacks on Xiaomi, although he didn't name names.

His critical statements included comments like "the company is only good at marketing, but the products are mediocre," and "blind hype shouldn't be used, as it endangers lives." He argued that Huawei's products and quality are superior, but people in this day and age still prefer cheaper goods, resulting in lower sales.

Xiaomi also responded sharply to the move. In addition to Lei Jun, CEO Lu Weibing and Vice President of Xiaomi's electric vehicle division Li Xiaoshuang also quoted what they believed to be Mo Yan's statement.

The next day, Wang Hua, Director of Communications at Xiaomi, posted an article that read, "The reeds on the wall sway, their legs are light and their roots shallow. The bamboo shoots in the mountains have pointed tips, thick skin, and hollow insides."

Lei Jun's post on social media. Photo: Weibo.

Just a few days ago, Wei Jianjun of Great Wall Motors attacked an "Evergrande of the automotive world." Evergrande is a real estate conglomerate that was once the largest in China but fell into a severe debt crisis, and its electric vehicle project is also considered a "gimmick" rather than a product of real quality.

The comparison to Evergrande implies that the company is all show and no substance, with excellent marketing but empty inside and a waste of resources. Although not explicitly named, BYD's communications director, Li Yunfei, responded with five posts on Weibo.

However, unlike Great Wall and BYD, Lei Jun and Yu Chengdong are both masters of internet marketing. Yu's nickname is "the big mouth," while Lei Jun is recognized by many industry giants such as Liu Qiangdong.

The war of words is taking place against the backdrop of numerous statements issued by the China Association of Automobile Manufacturers in recent days, calling for an end to the price war. However, many leading companies in the industry now seem largely unconcerned about this.

The Chinese electric vehicle industry is entering a "purification phase," with supply far exceeding demand, similar to the real estate market in 2019. WM Motor and HiPhi have collapsed, and the remaining companies are also in a precarious situation.

Prior to 2024, before Xiaomi officially launched its first electric vehicle (Xiaomi SU7), the relationship between the two companies was quite cordial. Lei Jun had praised Huawei's technological advancements, and conversely, Yu Chengdong had shared positive views on the smart device ecosystem, a market largely dominated by Xiaomi.

Objectively speaking, the Huawei chairman's statement is partly true. A study from Curtin University and Trinity Western found that luxury car brands tend to over-market their products. This reduces fair competition and the industry's overall appeal to consumers.

On China's QQ forum, some people argued that such verbal clashes are necessary because not everyone can freely express their opinions. The fan communities of each side are very loyal and willing to defend their brands when attacked.

The war of words didn't determine right or wrong, but it highlighted the contrasting communication strategies of the two companies. While Huawei focuses on building a premium brand image, emphasizing quality and cutting-edge technology, Xiaomi leverages the power of the community, making the most of social media.

Source: https://znews.vn/sep-xiaomi-va-huawei-khau-chien-post1557658.html