Thu. 28 Jul 2022, 12:21pm ET Benzinga Government, News, Regulations, Tech, Media
  • China probed the Minister of Industry and Information Technology Xiao Yaqing for "violation of discipline and law."
  • Xiao's ministry regulated the domestic heavy industry, automobile, telecom, and electronics sectors, overseeing companies from Huawei Technologies Co to Xiaomi Corp (OTC:XIACY), Bloomberg reports.
  • He attracted attention following his exclusion from a list of central government officials slated to attend the upcoming Party Congress.
  • The scandal coincided with the U.S. exploring restrictions on shipments of chipmaking tools to China, including canvassing countries to discourage chipmaking ties with China and approval of its CHIPS Act.
  • The upcoming monthly Communist Party's Politburo meeting vowed to strive for the "best outcome" for economic growth this year.
  • The situation unfolded weeks before China's Presidential election, in which President Xi Jinping will likely secure a third term.
  • Jinping consolidated power over the past decade partly due to a sweeping corruption crackdown.
  • Before his political career, Xiao was president of Aluminum Corp of China when it bought a $14 billion stake in Rio Tinto Plc (NYSE:RIO) with Alcoa Corp (NYSE:AA) in 2008. 
  • Earlier this year, China's top economic official offered an unusually public show of support for digital platform companies ahead of the election.
  • Price Action: XIACY shares traded higher by 0.62% at $8.18 on the last check Thursday.