Interesting story on the resignation of China Unicom vice president Li Gang has just crossed the wires.
To be precise, 57-year-old Li hasn’t been to work since Chinese New Year in early February and his resignation has just been approved by “higher authorities” (almost certainly the Communist Party organization department).
In January Li was rumoured to be leaving Unicom to head up one of the incoming MVNOs.
While there’s a revolving door between China’s SOEs and the bureaucracy – high-level positions are party appointments – senior execs don’t just leave when they feel like it.
As Li’s example shows us, they have a few hoops to jump through. Reportedly he’s been on the Chinese equivalent of ‘gardening leave’ since February.
The spectacle of a top official resigning in the middle of a fierce anti-corruption drive has sparked speculation, but so far there has been nothing to suggest anything other than that he is seeking a lucrative exit to the private sector.
On the other hand, China Unicom has made no announcement about Li's departure, which was formally approved on Monday.
Li became prominent in the early 2000s as head of Guangdong Mobile, which under his leadership contributed a third of China Mobile’s profit. He pioneered some of China Mobile’s biggest brands, such as the GoTone postpaid service and the Shenzhou card for mass market users.
After missing out on promotion at China Mobile he jumped to Unicom in 2005.
While nothing links Li to any malpractice, half a dozen China Mobile executives have been convicted for corruption in the last five years. Vice-chairman Zhang Chunjiang received a suspended death sentence in 2011 after his conviction for receiving $1.15 million in bribes. Last year a vice-president, Lu Xiangdong, was convicted over taking $4.1 million in bribes.