Apr 23, 2021 07:43 AM

Sentence of Former ZTE Labor Union Chief Upheld

What’s new: The high court in Guangdong province upheld a lower court’s order to jail a former ZTE Corp. labor union leader for 20 years on charges including illegal fundraising, court documents showed.

He Xuemei, who was arrested in 2017, was charged with fundraising fraud, embezzlement and misappropriate. As the Chinese telecom equipment maker’s labor union chief, she illegally raised 2.1 billion yuan ($323 million) from 8,819 people, mostly ZTE employees, between 2015 and 2017 citing high-yield investments, court documents showed.

A court in Shenzhen sentenced He to 20 years in prison. Several of He’s subordinates also received jail terms of four to six years. Some of the defendants appealed.

The background: He, 52, was chairwoman of ZTE’s labor union between 2000 and 2017. She joined the company in 1998.

Following He’s detention, ZTE used 899 million yuan of its own funds to compensate some victims who failed to receive repayments from He and associates.

The case rattled ZTE, sparking market concerns over its internal controls and financial management capacity.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Han Wei ( and editor Bob Simison (

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