Bloomberg noted earlier this week that the company has been holding talks with the government of the city of Wuxi about the possibility of bailing the company out.

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The China Daily newspaper said authorities in the eastern city of Wuxi were looking into the claims.

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He had grown up in the eastern commercial city of Wuxi and had been assigned the job of carpenter, until economic reforms took hold and he went into business for himself.

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"We are trying to confirm the online rumors, " said a woman at the general office of Wuxi city's family planning committee, a department under the municipal government.

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The government of Wuxi, the city where Suntech is headquartered, has come to Suntech's aid in the past -- and appears to be taking an even more active role in the company with the appointment earlier this week of a new president, Zhou Weiping, who previously worked for the government-backed Wuxi Guolian Development Co.

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