German sportswear manufacturer Adidas is investigating a widespread corruption case in China estimated to be worth "millions of euros," allegedly involving local employees working for the group, according to the Financial Times on Sunday. The newspaper reported that a message written by "Adidas-China" employees accuses several Chinese employees by name, including an executive in the company's marketing budget department. The document, which circulated this month on the Chinese social network Xiaohongshu, equivalent to Instagram, estimates this amount at €250 million annually.
The message was no longer visible on the platform on Sunday; however, a supposed copy of it was used in several accounts, and the Agence France-Presse was unable to verify its authenticity. The document cited by the Financial Times accuses Adidas employees of receiving bribes from service providers commissioned by the German group. An executive with Adidas-China was accused of receiving "millions in cash from suppliers, in addition to properties including real estate."
According to the Financial Times, Adidas received a warning on June 7 about "potential violations" in China. The group could not be immediately reached for comment. According to local newspapers, Adidas, which began operations in China in 1997, has more than 10,000 stores. However, the group has faced a rise in competition from local brands such as Anta and Li Ning in recent years. Nevertheless, Adidas's sales in China rose by about 8 percent year-over-year in the first quarter, according to results published in April.
