Chang Xiaobing, who has been leading the massive, state-owned, telecommunications firm China Telecom since August, is currently under investigation for “suspected serious disciplinary violations”, says CNN Money.
In China, a country lead by the Communist Party, “disciplinary violations” is another term for corruption, the same source claims.
China Telecom released a regulatory filing which was confirming the fact that their chairman is being investigated, but no other additional details regarding the main causes were given. Still, the company’s business operations were described as “normal”.
Besides being the country biggest fixed telephone line provider, the company is also its third mobile operator.
Before being appointed as China Telecom‘s CEO, Chang Xiaobing previously occupied a position as an executive at China Unicom, one of their main competitors and the country’s second-largest mobile phone provider. His move to the rival company was a part of a leadership reshuffle that coincided with plans for sweeping reforms to a government-owned sector with a value of $16 trillion.
This action is a part of an anti-corruption campaign started by China’s president, Xi Jingping, since he was installed in this function, back in 2013. Initially, analysts were skeptic about this campaign’s chances of becoming a success, but after the massive market crash registered this summer resulted in a new wave of investigations and detentions.
Until now, the Communist Party’s actions have not only targeted China Telecom, but even bigger companies, from the military or oil industry.
Back in October, the chairman of China’s biggest oil produced was sentenced to 16 years in prison after it was discovered that he was taking bribes and made abuse of power.
Finally, some investigations managed to attract media’s attention due to the sudden disappearance of executives, making everybody wonders about the procedures used by the party.