Drone company DJI loses $150 million to corruption – Venture Beat

What happened: Chinese drone-maker DJI has published an anti-graft announcement that places 45 former or current employees under investigation for allegations of fraudulently elevating product prices. Of the total, 16 have been sent to the police and 29 have been dismissed by the company. DJI said it expects losses to exceed RMB 1 billion ($150 million) as a result of the incidents.

Why it’s important: While facing rising external competition, China’s tech companies are confronted with more and more internal pressure from corruption. DJI’s news is not a single case. Tech giants including Tencent, Baidu, Huawei, JD, and Meituan-Dianping have all launched similar initiatives in an effort to stamp out corruption. In a recent case, ride hailing-giant Didi dismissed more than 80 employees last year for fraud, bribery, and information breaches.

Emma Lee (Li Xin) was TechNode's e-commerce and new retail reporter until June 2022, when she moved to Sixth Tone to cover technology and consumption. Get in touch with her via lixin@sixthtone.com or Twitter.

Leave a comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.