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As Wanxiang Group Corp., led by Pin Ni, president of the company's Elgin, Illinois-based U.S. operations, expands into emerging clean-energy technologies, it faces new scrutiny that threatens to smudge its reputation. Wanxiang's $465 million rescue package for struggling battery maker A123 Systems Inc., based in Waltham, Mass. gives it a chance to buy a majority stake in a world-class battery developer for electric cars.

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