Zhao Weiguo: The Rise and Fall of a Tech Mogul
Zhao Weiguo, former chairman of Tsinghua Unigroup, received a suspended death sentence for corruption and embezzlement. His mismanagement led the company into unprofitable ventures and bankruptcy. Under Zhao, Tsinghua Unigroup failed in its mission to advance China's semiconductor industry. A restructuring in 2022 shifted ownership to new stakeholders.
A Chinese court sentenced Zhao Weiguo, the former chairman of Tsinghua Unigroup, to death with a two-year reprieve for corruption and embezzlement. The verdict, issued on Wednesday, carries a suspended death penalty, conditional on his conduct over the next two years. Post-reprieve, Zhao will serve a life sentence.
The court in Jilin province also fined Zhao 12 million yuan, citing his illicit profits and harm caused to a publicly traded company. Tsinghua Unigroup, a state-backed semiconductor firm originally linked to Tsinghua University, didn't escape controversy, especially during Zhao's tenure, which saw the company divert into unsuccessful ventures.
Zhao's leadership saw the firm invest in non-core businesses like real estate and online gambling, leading to financial distress and a default on bond payments by 2020. By 2022, a restructuring transferred Tsinghua Unigroup's ownership to Wise Road Capital, Jianguang Asset Management, and state-affiliated funds, marking an end to Zhao's tumultuous era.
(With inputs from agencies.)
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