When you buy a smartphone or a Xiaomi smartwatch, you trust not just a tech, but an ecosystem that has become one of the largest in the world in a matter of years. But who really is behind this brand? Who owns the company that makes decisions about design, pricing and innovation? These are questions that many users are worried about — especially amid geopolitical tensions, sanctions and rumors about “Chinese surveillance.”
In this article, we will take a closer look at Xiaomi’s ownership structure, see how key shareholders have changed since 2010, and see why the company still remains “private” despite going public. And how it affects product quality, pricing and appliance availability in countries including Russia. Spoiler: there are no easy answers, but there are many interesting details that will help you better understand the brand.
Who founded Xiaomi: from startup to global giant
Xiaomi’s history began on April 6, 2010, when eight co-founders were all experienced in the largest companies in the world. IT-Chinese companies registered the company in Beijing, and the main ideologist and face of the brand was Lei Jun, who is often called "China's Steve Jobs." Before Xiaomi, he had already founded Kingsoft (an analogue of Microsoft Office in China) and sold it for billions, as well as working for UCWeb (browser developer). UC Browser).
Lei Jun has formulated the company's key philosophy: "Xiaomi will sell smartphones at cost, making money from the ecosystem of services." This model, inspired by Amazon and Google, allowed the brand to become the leader of the Chinese market in 3 years, overtaking Samsung. But who else was at the origins?
- 👨💼 Lin Binh, the company’s president, was responsible for the development MIUI (Before Xiaomi, he worked at Microsoft and Google China.
- 💡 Li Wangqiang, vice president, oversaw hardware, came from Motorola, where he was developing mobile chips.
- 📱 Hun Feng, co-founder, was responsible for designing the first smartphones, and previously worked at Google on Android.
- 🌍 Liu De is Vice President of International Development, who oversaw Xiaomi’s entry into India, Europe and Russia.
Interesting fact: Xiaomi's name translates to "millet" -- a small cereal plant, Lei Jun explained it like this: "We want to be small but nutritious like millet, not big and empty like watermelon," which was a metaphor that reflected the company's strategy of focusing on detail rather than high-profile marketing campaigns.
Xiaomi ownership structure: who really owns the company in 2026
After going public in Hong Kong in 2018 (IPO gathered $Xiaomi has formally gone public, but that doesn't mean it's run by a "shareholder crowd." According to 2026, the majority of the shares remain with the founders and key executives:
| Owner | Share (%) | Role in the company | wealth |
|---|---|---|---|
| Lei Jun. | ~31% | Co-founder, Chairman of the Board of Directors | Xiaomi, Kingsoft shares, investments |
| Lin Binh | ~13% | Co-founder, President (until 2020) | Xiaomi shares, bonuses |
| Institutional Investors (BlackRock, Vanguard, etc.) | ~25% | Passive shareholders | Portfolio investments |
| Small shareholders (public) | ~18% | — | Stock purchases |
| China's public funds | ~10% | Strategic investors | Support for the National Champions |
Key point: despite the IPO, Lei Jun retains full control over strategic decisions through a dual-class share system, which means that even with a 31% stake, he can block any other shareholders’ initiatives, a structure typical of Chinese tech giants (Alibaba, Tencent) and criticized for lacking transparency.
The myth that Xiaomi “belongs to the Chinese government” is often spread in Russia, and this is not entirely true: the state is not a majority shareholder, but indirectly influences through:
- 🏛️ Regulators, such as the Cyberspace Administration of China (CAC), data-collection.
- 💰 State funds like China Mobile or China Investment Corporation, which own minority stakes.
- 📜 National Security Laws (2017, 2021) obliging companies to cooperate with the authorities.
💡
If you are concerned about data security, check the privacy section of Xiaomi’s smartphone settings → Permits → Data Access. You can turn off sending statistics to China (although this may limit the functionality of some services).
How the ownership structure affects Xiaomi products
Xiaomi’s continued ownership of the founders has direct implications for users, and here are the key aspects:
- Price policy: Lei Jun still insists on a cost + 5% model, which explains why the Redmi Note 13 is cheaper than Samsung’s counterparts at similar performance, but in 2022-2026, the company began to raise prices for flagship models (Xiaomi 14 Ultra costs ~$1,500), due to shareholder pressure to demand more profit.
- Innovation vs. copying: Xiaomi is often accused of borrowing ideas from Apple (designed by Mi 11 vs. iPhone 12) or Samsung (foldable Mix Fold smartphones), a consequence of the “fast-follow-the-leader” strategy that Lei Jun openly describes as effective.
- Localization for different markets: In China, Xiaomi smartphones come with pre-installed services (Mi Pay, Mi Cloud), and in global versions they are often removed, the result of a compromise between the requirements of Chinese regulators and the expectations of foreign users.
Example: in 2023, Xiaomi released the Redmi K60 Ultra exclusively for China, although it surpassed the global POCO F5 in performance, due to the priority of the domestic market, where competition with Huawei and Oppo is particularly tough.
Why is Xiaomi not entering the US market?
Xiaomi and Russia: how sanctions and geopolitics affected the brand
After February 24, 2022, many Chinese companies began to wind down business in Russia, but Xiaomi did not.
- 📉 In 2022, Xiaomi’s share of the Russian smartphone market fell from 30% to 18% (data) MTS). The company explained this as “logistical problems”, but analysts attribute this to the risks of secondary sanctions.
- 💸 Rising prices: Redmi Note 11, which cost 18,000 in 2021 ₽, By 2023, it's gone up to 25,000. ₽ (+This is due to the weakening of the ruble and the increase in the cost of parallel imports.
- 🔄 The official partner of Merlion was a little-known company Mi-Rus, which raised questions about the quality of service.
Xiaomi continues to support Russian users:
- ✅ Firmware updates for global versions (MIUI Global) still coming out.
- ✅ Service centers are in operation (although parts are now delivered longer).
- ✅ In 2023, Xiaomi Store was launched on Wildberries, which made it easier to buy original equipment.
💡
Despite the decline in official shipments, Xiaomi remains one of the most popular brands in Russia due to its “gray” imports, but buying such devices risks getting a non-global firmware (with Chinese services) or losing the warranty.
Myths and Reality: Dispelling the Popular Misconceptions About Xiaomi
There are many myths around Xiaomi, from "they spy on users" to "all their smartphones break down in a year."
⚠️ Note: If you see the statement on the Internet that "Xiaomi belongs to Apple or Samsung" is fake, the company has never been part of other corporations, although it cooperates with them (for example, using Qualcomm chips or Samsung Display screens).
| Myth | Reality. | Source |
|---|---|---|
| "Xiaomi is spying on users" | In 2020, Forbes published an investigation claiming that the Mi Browser browser collects data about visited sites, which Xiaomi denied, but in the same year removed the Mi Browser from global firmware. Today, data is collected only with the consent of the user (see Settings → Privacy). | Forbes (2020) |
| Xiaomi is just a Chinese Apple. | Lei Jun was really inspired by Apple, but Xiaomi’s business model is closer to Amazon: low iron prices + monetization of services. In China, for example, 30% of the company’s profits come from selling content and financial services. | Xiaomi Annual Reports |
| Xiaomi smartphones are breaking down quickly | According to Counterpoint Research, the average lifespan of Xiaomi smartphones is 2.5 years, which is comparable to Samsung (2.7 years) and higher than that of Realme (2.1 years). 9A), where the savings on components are noticeable. | Counterpoint (2023) |
Another popular question is, “Is Xiaomi and POCO the same thing?”. POCO was formally a sub-brand of Xiaomi from 2018 to 2020, but today it is an independent company (although it uses Xiaomi’s platform for production), for example, the POCO F5 and Redmi K60E are the same smartphone, but with different firmware and marketing.
How to Check the “Pureness” of Your Xiaomi Device
If you bought a Xiaomi smartphone not in the official store, there is a risk of getting:
- 📱 Device with Chinese firmware (without Google Play, with forced registration in Mi Account).
- 🔄"Gray" imports with changed region (may block updates).
- 🛠️ Refurbished machine (for example, after repair under warranty in China).
To avoid problems, follow these steps:
☑️ Verification of the authentication of Xiaomi device
If you find that your smartphone is for China, you can reflash it to the global version.
- ✅ Unblock Google Play and remove Chinese services.
- ⚠️ Cancellation of the guarantee (if it was).
- ⚠️ This can cause the device to be locked if it is not done correctly (see para. FAQ).
What to do if you bought Xiaomi with Chinese firmware?
Xiaomi’s future: what changes to expect
In 2026, Xiaomi faces several challenges:
- Competition with Huawei, which has regained its leadership in the Chinese market since the lifting of sanctions against Huawei in 2023, is responding with premium models (Xiaomi 14 with Snapdragon 8 Gen 3 chip) and investments in automotive (Xiaomi SU7 electric car).
- Regulatory pressure: Xiaomi is accused of unfair competition (dumping prices) in the EU, and in India, the company has already faced a $675 million forfeiture of assets on tax evasion charges.
- Xiaomi announced the Surge G1 processor for smartwatches in 2026, and plans to launch a chip for smartphones by 2026, reducing its reliance on Qualcomm and MediaTek.
For users, this means:
- 📈 Prices of flagship models rise (due to inflation and shareholder pressure).
- 🔒 Tightening of privacy policies (to avoid new scandals).
- 🚗 Expanding the Ecosystem with Electric Vehicles and Smart Home (Xiaomi Smart Home).
Lei Jun says Xiaomi’s goal is to become the world’s second-largest smartphone company (after Apple) by 2026, and will actively expand its market in Africa and Latin America, where Xiaomi’s share is still below 10%.