The chairman of a State-owned liquor factory in Taiyuan, Shanxi province, has been suspended following detention for assaulting a former distributor, which prompted an investigation by the local State assets regulator.

On Jan 27, the Taiyuan State-owned assets supervision and administration commission announced it had suspended the enterprise's chairman, surnamed Rong, and launched a probe into the incident. The move came after media reports revealed Rong had been detained for three days for physically attacking a former distributor surnamed Zhang.

According to earlier reports, the altercation on Jan 26 stemmed from a dispute over unpaid funds. Zhang claimed he was assaulted while seeking 800,000 yuan ($114,983) in overdue payments from the liquor factory. A sales executive from the factory suggested Zhang had demanded the sum and attempted to threaten Rong the previous day.

In a statement, the commission confirmed Rong was involved in a conflict related to enterprise payments and had engaged in assault. The regulator has formed a working group to stabilize operations at the factory and will conduct a joint investigation with disciplinary and public security authorities. Further actions will be taken based on the inquiry results.

The case has drawn public attention to conduct within State-managed enterprises. Authorities have emphasized strict accountability.