China's Top Phone Maker Moving Some User Data Where Beijing Can't See It

Employees in an administrative department at the Xiaomi Corp. headquarters in Beijing, on Sept. 12, 2014. Photographer: Brent Lewin/Bloomberg

Xiaomi's company mascot is a stumpy bunny who wears a red-starred Chinese army hat. That sort of patriotism probably helped the startup cultivate a fervent fan base in its home country, catapulting Xiaomi past Apple and Samsung Electronics to become the No. 1 smartphone maker in China. But it's not boosting the company's image off the mainland.

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