Indicted for Corruption Including Economic Losses and Illegal Occupation of State Assets in China
Court Orders Permanent Deprivation of Political Rights and Confiscation of All Personal Assets
Zhao Weiguo, the founder and former chairman of Tsinghua Uni (also known as Tsinghua Unigroup), a state-owned enterprise that symbolized China's ambitions in the semiconductor industry, has been sentenced to death with a two-year reprieve.
On May 14, according to China Central Television (CCTV), the Jilin Intermediate People's Court in Jilin City, Jilin Province, handed down a first-instance verdict, sentencing Zhao to death with a two-year suspension for corruption charges. He was found guilty of causing economic losses amounting to several hundred million yuan to the national economy and illegally occupying state assets.
The court also ordered the permanent deprivation of his political rights and the confiscation of all his personal assets. Additionally, Zhao was sentenced to five years in prison and fined 10 million yuan (approximately 2 billion KRW) for providing illegal benefits to relatives, and three years in prison and a fine of 2 million yuan (approximately 400 million KRW) for infringing upon the interests of a listed company.
The court ruled that the scale of corruption, reaching several hundred million yuan, was so vast and caused such severe damage to the state that the death penalty was justified. However, the court decided not to carry out the execution immediately, citing Zhao's admission of guilt and his full restitution of illegal gains.
Between 2018 and 2021, Zhao was accused of using his position to acquire real estate?originally intended for corporate purchase?at below-market prices, thereby profiting from the price difference and illegally occupying state assets worth 470 million yuan (approximately 90 billion KRW).
He was also charged with causing economic losses exceeding 890 million yuan (approximately 170 billion KRW) between 2014 and 2021 by assigning the company's most profitable businesses to specific associates.
Zhao Weiguo, former chairman of Qinghua Uni, sentenced to suspended death penalty. Jilin Intermediate People's Court, Jilin City, Jilin Province, China Weibo
Zhao graduated from the Department of Electronic Engineering at Tsinghua University, the alma mater of Chinese President Xi Jinping. In 2009, he was recruited as CEO of Tsinghua Uni, a university-run enterprise, and shifted the company's business focus to semiconductors. Tsinghua Uni raised funds through aggressive loans and bond issuances, then acquired promising companies via large-scale mergers and acquisitions. However, the company eventually fell into a liquidity crisis and defaulted on its debts in November 2020.
At the time, some analysts viewed Zhao's punishment as holding him accountable for the failure of China's decade-long push to develop its semiconductor industry. Others interpreted it as a response to Zhao's direct opposition to Chinese authorities during bankruptcy proceedings, suggesting he was punished for defiance. In 2021, Zhao publicly issued a statement opposing the sale of assets at below-market prices.
According to AFP, in China, death sentences for corruption-related charges are often commuted to life imprisonment upon appeal.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
