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Is Your Xiaomi Watching You? What You Should Know About Their Data Habits 

Article by Tsaaro

7 min read

Introduction  

In an age where smartphones are not just communication tools but constant digital companions, concerns about how much our devices track us have grown significantly. Among the many brands under scrutiny, Xiaomi a prominent player in the affordable smartphone segment has often found itself at the center of data privacy controversies. While the company positions itself as privacy-conscious and user-first, several investigations present a more complicated picture. A 2020 Forbes investigation revealed that Xiaomi’s browsers were recording users’ web activity, including in incognito mode. Similar concerns were echoed in reports by Digit and Bitdefender, both highlighting the transmission of potentially identifiable user data to remote servers. ITPro also covered Xiaomi’s data practices, focusing on the scale and implications of such tracking. This article examines Xiaomi’s data collection mechanisms, the controversies they’ve sparked, and what users should be aware of when relying on such devices.  

The Reputation and Reach of Xiaomi  

Xiaomi Corporation, founded in 2010 and headquartered in Beijing, is among the world’s top smartphone manufacturers. With a strong presence in emerging markets like India and parts of Europe, Xiaomi positions itself as a budget-friendly alternative to Apple and Samsung, with devices packed with advanced features. However, affordability sometimes comes at a price. Critics argue that Xiaomi’s ecosystem, spanning phones, TVs, fitness devices, and smart home products is designed to maximize data collection for monetization through advertising and ecosystem lock-in.  

Allegations of Data Collection and Browser Spying  

In May 2020, a report by cybersecurity researchers at Forbesrevealed that Xiaomi’s default browser (Mi Browser Pro and Mint Browser) was recording every website a user visited, even in incognito mode. The data was allegedly sent to remote servers in Singapore and Russia that were hosted by Chinese companies. The researchers, Gabriel Cirlig and Andrew Tierney, stated that this data could easily be matched to specific users due to the unique device identifiers being transmitted.  

Xiaomi initially denied this but later admitted that it was collecting anonymized browsing data and updated its browsers to allow users to opt out of this tracking.  

Data Transmission to Chinese Servers  

Another concern raised in various reports is Xiaomi’s alleged data transmission to servers based in China. According to a study by VPNpro and CyberNews, some Xiaomi apps, even when not in active use, could send encrypted data to servers in China, including app usage patterns, metadata, and behavioral metrics.  

Such practices may conflict with fundamental data protection principles. The principle of data minimization dictates that only data necessary for a specific purpose should be collected. Continuous transmission of usage data, even when apps are inactive, may exceed what’s necessary. Purpose limitation requires that data be collected for specified, explicit purposes and not further processed in a manner incompatible with those purposes. Transparency mandates that users be informed about what data is collected, how it’s used, and with whom it’s shared. Hidden data transmissions undermine this principle. Finally, user consent is essential; data collection should be based on the user’s informed consent, especially when sensitive data is involved.   

Xiaomi responded by stating that all data collection is done with user consent and complies with applicable data protection regulations, including the GDPR for EU citizens. However, given China’s cybersecurity and data laws, many analysts express concerns about potential state access to such data.  

Advertising and MIUI Analytics  

Xiaomi’s MIUI (its custom Android-based OS) integrates ads and suggestions into its core system apps. The company runs an advertising platform known as “Mi Ads,” which leverages user behavior, app usage, and browsing data collected across Xiaomi services. Xiaomi’s advertising guidelines stipulate that certain types of content, such as adult-oriented ads, should not target minors and must comply with local laws and regulations. However, the effectiveness of age verification mechanisms and the extent to which minors are protected from data collection remains unclear.   

The company claims that all data is anonymized and stored securely, but it is clear that, even anonymized data can often be re-identified using pattern recognition and device-specific identifiers. Furthermore, MIUI Analytics can reportedly gather detailed telemetry, including screen touches, open times, and interaction logs used to personalize ads and services.  

Transparency and Privacy Policies  

Xiaomi maintains a publicly accessible privacy policy that outlines how it collects, uses, and protects user data. The policy asserts that Xiaomi does not sell personal data to third parties and that it follows international standards such as ISO/IEC 27001 and ISO/IEC 27018 for data security and cloud privacy.  

Despite these assurances, privacy watchdogs and digital rights groups argue that the policies are often vague and difficult to audit. Moreover, in some jurisdictions like India, there is still a lack of comprehensive privacy regulation, leaving users vulnerable.  

Implications for Users  

The Xiaomi case underscores a broader concern in the tech world: what do users consent to when using “free” or low-cost devices? The embedded nature of data analytics in mobile ecosystems makes it challenging for even aware users to fully grasp the extent of surveillance.  

As devices become more integrated into daily life, from sleep tracking to smart home automation, the ability of companies to harvest and analyze personal data expands. In Xiaomi’s case, while the company has taken some steps toward transparency, persistent concerns remain about how much control users truly have.  

Xiaomi has undertaken several initiatives to enhance transparency:   

  1. Transparency ReportsXiaomi publishes annual transparency reports detailing data requests and how user data is handled.   
  1. Privacy Policies- The company has updated its privacy policies to provide more detailed information on data collection and usage.   
  1. User Controls- Xiaomi has introduced settings allowing users to opt out of certain data collection practices, such as personalized ads.   

However, despite these measures, questions remain about how clearly these policies communicate actual practices to users. An example of vagueness in Xiaomi’s privacy policy is the statement, We may collect information about your device to provide better services This lacks specificity about what data is collected and how it’s used.  

Actual transparency would involve:  

  1. Detailed Data Inventory: Clearly listing all types of data collected.  
  1. Purpose Specification: Explaining why each data type is collected.  
  1. Data Sharing Disclosure: Identifying third parties with whom data is shared.  
  1. User Rights Information: Informing users of their rights regarding data access, correction, and deletion.  

Why the Xiaomi Data Debate Should Matter to You  

Reading through Xiaomi’s journey with user data, one thing becomes clear that, we, as users, are often navigating complex systems without full visibility. While the company continues to promote itself as privacy-conscious, the recurring concerns around browser tracking, encrypted transmissions, and behavioural monitoring cannot simply be brushed aside as technical ambiguities.   

It’s not just about one browser update or one data transmission. It’s about patterns. The kind of patterns that tell stories about our browsing behaviour, our usage habits, even our screen touches. These are not just technical logs, they are tiny digital footprints that, when stitched together, form a surprisingly vivid portrait of our lives.  

Yes, Xiaomi has publicly available policies, and yes, it cites international standards. But for many of us, these privacy documents feel more like marketing brochures than meaningful protections. And in places where strong privacy laws are still catching up, the gap between what is promised and what is practiced can be wide.  

Xiaomi’s Data De-anonymization  

While there is limited critique specifically targeting Xiaomi’s anonymization methods, this blog includes an independent analysis based on broader data privacy research. Anonymization is not a uniform or foolproof process, there are multiple techniques, and their effectiveness can vary significantly. In some cases, combining anonymized datasets with auxiliary information may allow re-identification of individuals. This concern is not unique to Xiaomi but is a general risk in how data is handled across digital ecosystems. The key issue is that some anonymization techniques are more vulnerable to reverse engineering or pattern matching than others, making it essential for companies to adopt a well-audited method available.  

Conclusion  

The Xiaomi data tracking controversies shed light on the often-opaque data ecosystems embedded in modern smart devices. While Xiaomi has made efforts to revise policies and provide opt-out mechanisms, the company’s history of browser tracking, data transmission practices, and telemetry collection raises serious questions about user autonomy and privacy.  

With millions relying on Xiaomi devices globally, it is critical for regulators, developers, and users to demand greater transparency and accountability. As digital rights become a central pillar of consumer protection, manufacturers like Xiaomi must evolve from reactive PR measures to genuinely privacy-first design. Until then, users should remain vigilant, minimize permissions, disable analytics where possible, and stay informed about what their devices might be doing behind the screen.  

Tsaaro Consulting

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