Qualcomm, China Advisor, Under Scrutiny For Questionable $975K Consult

A senior advisor for China’s State Council has been fired for allegedly helping Qualcomm Inc. in an antitrust probe in exchange for $975,000 in consulting fees. Zhang Xinzhu said he was fired for “speaking for foreign firms,but the Chinese Compliance Digest says he was fired for “violating work discipline,” and that it was told that Qualcomm’s payment to Xinzhu was in exchange for his assistance with a report to a Chinese Agency where he was a senior advisor. The report was said to show that the company did not engage in anti-competitive practices. China’s National Development and Reform Commission has been investigating Qualcomm for months, for alleged overcharging and abusing market position, and Qualcomm brought in Xinzhu, without state approval, to help it fight the charges. Meanwhile the SEC launched an investigation into Qualcomm after a whistleblower complaint in 2012.