Hyundai Motor has stopped production at its China factories as the fallout from a political spat between Seoul and Beijing continues to inflict pain on South Korea’s largest automaker. Shares in Hyundai slid as much as 3.8% on Wednesday morning in Seoul, a day after the company said its Chinese affiliate Beijing Hyundai Motor had ceased operations at its four plants in China after a local supplier refused to provide necessary parts when it did not receive payment. The development is the latest blow to the South Korean group, which last month reported a 65% drop in sales in China, its largest market. According to Reuters, much of the pain is a direct result of Chinese economic retaliation against South Korean companies after Seoul earlier this year began installing a US-owned and operated missile shield on the peninsula to defend against North Korea.
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