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China's environmental rules threaten GM, VW parts supply

Beijing shuts down plant that produces parts for Germany's Schaeffler

SHANGHAI -- China's crackdown on polluters could threaten the operations of carmakers such as General Motors and Volkswagen, as a supplier to a leading auto components maker was shut down due to a violation of the country's stricter environmental laws.

Authorities recently ordered the supplier of German parts maker Schaeffler to halt operations, according to Chinese media reports. In response, Schaeffler filed a petition to the Shanghai municipal government last week, saying it will also be forced to stop production if supply from the metal-processing company is cut off.

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