A liquor wastewater treatment project in Renhuai, Southwest China's Guizhou Province Photo: Henan Broadcasting System

The municipal government of Renhuai, a county-level city under the administration of Zunyi, Southwest China's Guizhou Province, issued a notice on a widely followed case in which a company's factory investment was "forcibly taken over" by local authorities, saying the case is being investigated by local Zunyi government. 

A task force led by the city's political and legal affairs committee has been set up to conduct a full probe, with results to be released to the public in due course, the notice said.

On Wednesday, local media outlets reported that China-based environmental protection company Taike Eviroment Protection's factory project in Renhuai was "forcibly taken over." The Renhuai municipal government's information office released a statement, which the company reposted on its official website.

According to the report, in 2017 the company, together with a state-owned enterprise, won a joint bid for the Anlongchang liquor wastewater treatment project in Maotai town, Renhuai, Guizhou Province. 

The total investment was 820 million yuan ($113.9 million), with Taike Eviroment Protection contributing and financing over 700 million yuan, giving it an 86-percent stake in the project company.

The contract granted a 30-year concession, after which the facility would be transferred to the Renhuai government free of charge.

However, the report said that just 17 days after production began on May 24, 2022, the Renhuai Bureau of Industry and Commerce unilaterally terminated the contract on June 10 citing "serious breach," ordering staff to leave within two hours, and took over the facility.

The Renhuai municipal government said it has set up a special task force to conduct a thorough investigation based on earlier work, and the findings will be made public in a timely manner.

The city pledged to protect the legitimate rights and interests of all market entities on an equal basis in accordance with the law, address outstanding legacy issues, hold accountable those who infringe upon entrepreneurs' lawful interests, and investigate illegal practices aimed at securing undue gains, in order to foster a market-oriented and law-based business environment.

Global Times