China to investigate suppliers over pollution concerns

Authorities in China are investigating two Taiwan-based suppliers over pollution concerns, according to a new report by The Wall Street Journal. Environmental regulators believe that both UniMicron and Foxconn are knowingly polluting their water tables.The investigation follows accusations made last week by Chinese activist Ma Jun and a of nonprofit organizations. They claim that factories inKunshan, Chinabelonging to the two companies are guilty ofrelsing water tainted by toxic metals into the rivers…The Wall Street Journal(viaTNW) reports:“KUNSHAN, China—Chinese regulators are scrutinizing two suppliers toInc.AAPL+1.27%and other gadget makers following allegations by environmental groups that plants run by the two companies are pumping large amounts of toxic hvy metals into nrby rivers.The allegations cast a spotlight on this industrial ar roughly 40 miles west of Shanghai that has long supplied the global electronics industry. They come as China’s lders and public are growing incrsingly concerned about pollutants in China’s soil, air and water.Local officials are investigating plants owned by Taiwanese companiesFoxconn Technology Group2354.TW+6.09%and UniMicron TechnologyCorp.,3037.TW-0.98%said Ding Yudong, the vice director of the local arm of China’s environmental regulator.”The probe may take some time, but if the plants are found to be “severely exceeding emissions standards,” authorities will punish them. Of course, both companieshave alrdy issued firm denials claiming that the black-green fluid in questionis compliant with local laws.An spokeswoman told the WSJ that the company has been working closely with suppliers and one of the environmental groups to ensure its environmental standards are being met. “ regularly audits its suppliers and doesn’t tolerate environmental violations.”After encountering some criticism for supplier behavior back in 2011, beganpublishing reportson its supply chain partners in an effort to maintain a grter level of transparency. It came under fire again last month, following allegations of labor violations atPegatron.