Beijing Simplot Food Processing will have to pay 3.9 million yuan ($629,000) after its waste water was found to have levels of impurities above legal limits.
The company said it also serves other companies in East Asia.
IBeijing Simplot Food Processing said it had paid the fine and would take steps to avoid a recurrence.
McDonald’s said in a statement that it took the issue “very seriously” and would be monitoring Beijing Simplot’s compliance. It said it suppliers “must comply with all relevant local laws and regulations”.
A small amount of polluted water had entered the city’s main water pipes, but was not dangerous to the public, a local official was quoted as saying by Jinghua Daily News.
China has been facing international pressure to clean up its environment and an increasing number of local protests concerning pollution.
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