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US man held in China says deal made

An American company boss has been freed after a pay dispute was resolved with the Chinese workers who had been detaining him at a Beijing plant.

Chip Starnes said a deal was reached overnight to pay the scores of workers who had demanded severance packages similar to ones given to redundant employees in a phased-out division, even though the company said the remaining staff were not being laid off.

Neither Mr Starnes nor district labour official Chu Lixiang gave details of the agreed compensation. Chu said all of the workers would be laid off, and Mr Starnes said some of them would be rehired later.

Chu told reporters that the dispute was resolved "to each side's satisfaction".

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