Beijing closures bring lawsuits

Allan Hall11 April 2012

China is facing a blizzard of legal actions from Western businesses being told by Beijing to shut down factories during the Olympics to improve air quality in and around Beijing.

Lawyers for five German firms operating in the region - including engineering giant GEA and construction machinery specialist Wirtgen - are poised to file a lawsuit resisting the order to close from this week until September.

Other actions are expected to follow from businesses in South Korea, Japan, Denmark and Sweden.

Some 1,100 businesses, many located up to an hour from the city centre, have been ordered to put production on hold for the duration of the Games.

In addition, 267 companies in Tangshan, north of the city, will have to cease operations and 40 factories in nearby Tianjin are closing.

China's steel output will be cut by as much as 12% due to the measures and tens of thousands of workers will be forced to stay home for the duration of the Games --many with only half pay.

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