Johnson Controls in Thick of Chinese Pollution Case.

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Trefis) -- The Chinese government has decided to tackle heavy metal pollution head on as there has been a public outcry on increasing incidents of acid contamination from copper mines and drinking water being threatened by cadmium spills.

The government has decided to conduct a review of lead-related industries, which are considered the biggest pollutants, and strengthen the monitoring of pollutants from them. This comes in the wake of a heavy metal measurement plan China had issued last year to tackle five key industries, including that of lead acid batteries. The document contained specific information on 1,962 lead battery makers, including volume and discharged waste water for each one of them.

See our full analysis for Johnson Controls here.

Johnson Controls ( JCI) has found itself on the other side of this issue as it has been implicated by the city of Shanghai in a lead poisoning case which affected 49 children.

The city has alleged that Johnson Controls and two other companies were responsible for the leak which led to increased levels of lead in the blood of these children. Their plants are believed to be operating above the specified emission limits set by the Chinese government in a bid to increase their operations and boost capacity. The government has ordered these companies to suspend their operations till results of the detailed investigation are out.

Lead acid batteries are the most important operation of Johnson Control's, accounting for more than 32.8% of the stock's value.

Johnson Controls has denied these allegations and disputed any link between its plant and the children's ailments.

The company says that at no point of time it has operated beyond the specified emission limits. However, careful to avoid any confrontation with the Chinese government, which is one of the biggest markets for the company, Johnson Controls has said that it will continue to work with the government in a "transparent and cooperative manner" on "scientifically" assessing the issue.

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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.