Li Xiang, the outspoken founder and CEO of Li Auto, has shattered the veneer of corporate civility in China’s automotive industry. Over a frantic 48-hour period, Li unleashed a series of posts on WeChat accusing a Japanese joint-venture brand of orchestrating a ‘black water army’—coordinated paid trolls—to smear his company’s reputation. This public outburst marks a significant escalation in the ‘PR wars’ currently engulfing the world’s most competitive electric vehicle (EV) market.
The conflict was triggered by the launch of the Dongfeng Nissan NX8, a new SUV that enters a crowded segment dominated by Li Auto’s family-centric hybrids. According to Li, his products were subjected to a wave of ‘hit pieces’ and fabricated negative comments that showed clear signs of organizational coordination. Li Auto’s legal department has since announced it has secured evidence of these activities and is referring the matter to public security authorities, characterizing the campaign as an illegal disruption of fair market competition.
While Li did not initially name his rival, the circumstantial evidence pointed directly to Dongfeng Nissan. The Japanese automaker’s regional head, Wang Qian, eventually responded on social media, claiming the company respects all peers and adheres to industry rules. However, the tension was exacerbated by earlier comments from Nissan executives who joked about ‘crossing the river by touching Li Auto’—a Chinese idiom suggesting they were using Li Auto’s success as a blueprint while simultaneously challenging them.
This incident is symptomatic of the broader ‘involution’ or 'neijuan' plaguing the Chinese auto sector. As traditional joint-venture brands lose market share to domestic EV upstarts, the competition has shifted from the showroom floor to the digital sphere. Companies are increasingly accused of weaponizing ‘black PR’ to erode competitor brand equity, creating a toxic information environment where consumers struggle to distinguish genuine reviews from paid propaganda.
Li Xiang’s decision to ‘stop being patient’ reflects a growing trend among Chinese tech leaders who are bypassing traditional press releases in favor of aggressive, personal social media engagement. By invoking the police and the concept of ‘digital black industries,’ Li is positioning himself not just as a victim of business rivalry, but as a defender of legal order in a market that many analysts fear is descending into a race to the bottom.