The Central Commission for Discipline Inspection (CCDI) of the Communist Party of China has announced allegations against the majority shareholder and former head of Chinese technology developer and chipmaker Tsinghua Unigroup, Zhao Weiguo.
The CKPD accused him of corruption, as well as the fact that he “managed the state company as if it were his own property.” According to her, Mr. Zhao transferred lucrative assets to the management of his relatives and friends, purchased goods and services from companies associated with him at prices “significantly higher than the market”, etc.
The CCPD will now refer the case to the prosecutor’s office, which should file formal charges against Mr. Zhao. He was arrested in July last year, then an investigation began against him. Tsinghua Unigroup is one of China’s largest technology companies, established in 1988 by Tsinghua Holdings, a holding owned by Tsinghua Research University. Tsinghua Unigroup’s problems began in 2016, and in 2021 the company was forced to file for bankruptcy when its debt exceeded $31 billion.
The Chinese authorities are actively investing in local development and production of semiconductors in the face of US sanctions that make it difficult for Chinese companies to access chips. In 2019, China created a $29 billion fund to support this industry.