China charges Tsinghua Unigroup’s former chairman with corruption

China has charged the former chairman of chip conglomerate Tsinghua Unigroup, Zhao Weiguo, with crimes including corruption and illegally earning profits for his friends and family, the country’s anti-graft watchdog said in a statement on Monday.

Zhao is alleged to have handed profitable businesses to his relatives and friends to operate and purchased goods from units managed by his associates at prices higher than the market rate, the Central Commission for Discipline Inspection said.

Tsinghua Unigroup did not immediately respond to a request for comment. Reuters was unable to reach Zhao for comment.

Originating as a branch of China’s prestigious Tsinghua University, state-backed Tsinghua Unigroup emerged in the previous decade as a would-be domestic champion for China’s laggard chip industry.

Last year, Tsinghua Unigroup completed a restructuring plan that placed it under the ownership of a vehicle controlled by Wise Road Capital, Jianguang Asset Management, and a number of state-affiliated funds. Zhao was replaced by Li Bin in July.

Financial magazine Caixin reported in the same month that Zhao had been taken away from his home Beijing by authorities and had since been out of contact. Nasdaq