Last Friday (8), Chinese authorities arrested several executives from NetEase, a technology and gaming company, on suspicion of corruption and money laundering. Among those detained were the company's general manager, Xiang Lang, and the head of its eSports division, Jin Yuchen. The operation dismantled an alleged bribery scheme, directly affecting the relationship between NetEase and 28 of its suppliers.
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Investigations indicate that the case caused approximately US$139.3 million (R$806 million) in losses to the company. In response, NetEase announced the dismissal of nine employees involved in the scheme, whose profiles were removed from the company's internal systems. Furthermore, as a symbolic and preventative measure, the company changed the wallpapers on employees' computers to highlight its compliance policies.
Cooperation with authorities and compliance measures
Following the executives' arrest, NetEase issued a public statement stating that it will continue to cooperate with the local police investigation. However, this isn't the first time the company has faced corruption allegations. In September 2023, it had already fired other executives on suspicion of involvement in similar embezzlement schemes.
Therefore, to prevent further incidents, NetEase has strengthened its compliance guidelines. According to the company, the goal is to create a transparent and legally compliant work environment, as well as to protect business relationships with its suppliers and partners.
History and impact on the games market
NetEase is one of China's largest technology companies, known primarily for developing mobile games. In recent years, the company has invested in international partnerships and console game development, seeking to strengthen its global presence in the digital entertainment sector.
Among its most recent projects, NetEase announced a collaboration with developer Bungie to create "Destiny: Rising," a mobile spin-off of the Destiny franchise. The company also released "Marvel Rivals," a 6v6 shooter featuring Marvel heroes, and is expected to resume operations for "World of Warcraft" in China soon. NetEase also owns renowned studios such as Quantic Dream and Grasshopper Manufacture.
NetEase Case: Losses and the Importance of Compliance
The arrests and the multi-million dollar losses represent a severe blow to NetEase's image and business operations. The company, which in recent years has expanded its partnerships with Western companies, now faces the challenge of restoring its reputation in a competitive and high-growth market.
NetEase announced that it will continue to enhance its corporate integrity and control mechanisms. The Chinese company reaffirmed that compliance with local and international legislation is essential to ensuring transparency and trust in its business relationships.
