Mr Zhao is the former chairman of computer chipmaker Tsinghua Unigroup.
Key players in the sector were investigated for corruption last year after the government poured billions of dollars into projects which stalled or failed.
Mr Zhao and Tsinghua Unigroup did not respond to BBC requests for comment.
In a statement, the Central Commission for Discipline Inspection alleges that Mr Zhao "took the state-owned company he managed as his private fiefdom."
The regulator says he handed profitable businesses to his relatives and friends, and purchased goods and services from companies managed by his associates at "prices significantly higher than the market".