Now They Speak Out

In response, Alcoa steel said it was not "directly involved" and was "setting the right example" in China for human rights. Nike distanced itself, too, saying it has worked "aggressively" to make sure Chinese subcontractors comply with fair labor standards. "It's not that we opposed the original American Chamber of Commerce comments. It's just that we weren't involved," says Erin Dobson, a Nike spokesperson.

Others attack the law as doomed to backfire, saying it could force firms that obey labor laws to subcontract more work to those that evade them. If the reform makes it too costly for companies to operate legally, "the sweatshop problem in China will become more serious," says Dong Baohua, a professor at East China University of Political Science and Law who is advising Beijing. Given that one quarter of the world's workers live in China, the new law will resonate globally, gutted or not.

© 2007