Online rumors suggest that the network troll team targeting NIO has been dismantled, with over 30 arrests, the confiscation of more than 20,000 mobile phones, and the freezing of 200 million yuan in funds.

Xiaomi's Legal Department has revealed even more startling information. A well-organized and premeditated case of online black PR has been resolved, with criminal suspects facing coercive measures by public security authorities. Since December of last year, up to the recent buzz around Xiaomi's automobile venture, this criminal syndicate used automated copywriting software to fabricate false information about Xiaomi and manipulated nearly 10,000 social media accounts to maliciously spread rumors and false statements. Methods included inciting online opposition and using comparative praise and denigration to exacerbate the situation, severely damaging Xiaomi's reputation.

New Characteristics of Modern Online Troll Crimes

The Xiaomi case exemplifies several criminal traits of contemporary online trolls: gang operations, tight organization, and substantial criminal proceeds, all of which have a profoundly detrimental impact on the online environment and corporate reputations.

With the ease of mobilizing hundreds of millions of funds, controlling over a dozen MCN agencies, and disseminating information through nearly 10,000 media accounts, this extensive operation appears unlikely to be the work of mere industry competitors.

Some analysts speculate that capital is likely involved, with significant sums being used to orchestrate black PR and troll activities aimed at maliciously slandering and suppressing specific listed automobile companies. The objective is to depress the company's stock price on the market, allowing perpetrators to buy low and sell high, thereby profiting from the price differential.

Currently, the vast majority of domestic automobile companies are listed, with some on domestic A-shares, some on Hong Kong H-shares, and others on Nasdaq in the United States. Some automobile companies are even listed in multiple locations, both domestically and internationally.

Negative news is highly sensitive to the stock prices of listed automobile companies. Years ago, a Guangzhou newspaper extensively reported BYD's severe losses after acquiring a company in Lianyungang. Consequently, BYD's Hong Kong stock fell for several consecutive days. These reports were later proven false but had a significant impact on the stock market. BYD subsequently reached out to a deputy minister of the Propaganda Department of the Guangdong Provincial Party Committee, who halted the newspaper's publication.

Returning to BYD, an untrue report on a domestic website claimed that Mercedes-Benz would abandon BYD's lithium iron phosphate batteries, leading to a sharp decline in BYD's Hong Kong stock. Several major BYD shareholders outside the exchange were displeased and considered suing the website. Later, the website's responsible person personally called BYD President Wang Chuanfu to apologize. Wang Chuanfu persuaded these major shareholders, and no lawsuit was filed.

Besides using negative news to short specific automobile company stocks, there are instances where media and capital collude to spread false positive news to push up the stock market. Over a decade ago, a newspaper published a sensational story claiming that the National Development and Reform Commission would abolish locally formulated automobile purchase quotas and Beijing's automobile lottery policy. Upon release, domestic automobile stocks surged that day. However, this news was later proven false and never materialized. At the time, I communicated with the director of the Automobile Division of the Industrial Department of the National Development and Reform Commission, inquiring if Xinhua News Agency should issue a rebuttal. He advised against it.

The Crucial Task: Unmasking the Financial Backers Behind Online Trolls

On May 21st, the Central Cyberspace Administration Office issued a notice, initiating a two-month nationwide special action titled "Clear and Bright · Optimize the Business Environment Online — Rectify Online 'Black Mouths' Involving Enterprises." This action focuses on the chaos caused by online "black mouths" harming enterprises, prioritizing the rectification of four prominent issues: malicious slander and attacks on enterprises, extortion and blackmail of enterprises, malicious marketing and hype, and disclosure of secrets and infringement.

The notice emphasizes the need to address the organization and manipulation of "online trolls" and "black PR," collaborative publication of negative information involving enterprises, and malicious attacks on enterprises or entrepreneurs. It also highlights the rectification of false and misleading evaluations that intertwine business with testing or vice versa. Furthermore, it targets the use of discourse power and influence, under the guise of "public opinion supervision" and "news supervision," to extort "protection fees" from enterprises and publish false or negative information at critical junctures such as new product launches, listings, and financing, coercing enterprises into business cooperation.

The notice mandates network platforms to take responsibility. Website platforms must align with the special action's rectification focus, enhance review and disposal standards for enterprise-related information, strengthen content management of key areas like hot searches and trending lists, bolster daily management of financial and economic public accounts and MCN agencies, improve the functional setup of the platform's complaint and reporting area for enterprise-related infringement information, refine reporting guidelines, optimize workflows, and elevate work quality and efficiency.

The notice proposes intensifying punishment and exposure efforts, severely punishing and publicly exposing websites, platforms, and accounts that fail to effectively implement the special action and whose circumstances are severe, in accordance with the law, to strengthen warnings and deterrence.

This action by the Central Cyberspace Administration Office to rectify online "black mouths" encompasses a broad range, including media accounts, network platforms, and MCN agencies. The rectification efforts are substantial. Beyond addressing the chaos caused by online "black mouths," for organized, premeditated cases involving substantial criminal proceeds and having profoundly negative effects, it is imperative to uncover the financial backers and funders of such activities. Following these leads, severe punishment should be imposed in accordance with Article 182 of the Criminal Law, "the crime of manipulating the securities and futures markets," to restore clarity to China's automobile market. (End)