(1) In 2002, the CECC held twohearings on labor rights and working conditions in China and made a number of recommendationsin its annual report, including expanding rule of law and legal aid programs for workers andpromoting work health and safety councils, raising awareness among export companies in China ofthe importance of legal and fair working conditions to U.S. consumers, and raising the profile oflabor issues in the U.S.-China bilateral dialogue. Labor Conditions in China

		Foreign Invested Enterprises

Many egregious forms of labor exploitation have been reported in foreign-owned or "overseas" factories in China's coastal provinces that are engaged in low-skill, labor intensive production forexport. 182 (core), Worst Forms of Child Labor; No. In 2002, toys, footwear, and apparel items made up about25% of all U.S. imports from China, while the PRC was the top supplier of toys, footwear, andleather goods to the United States. Only one of the codes sampled in this reportaddresses the problem of subcontracting. The financial incentives of suppliers in China to abide by codes of conduct -- attracting or maintaining the business of U.S. corporations -- are often negated by countervailing economicpressures. The Nike and ICTIcodes do not contain provisions on discrimination. Others provide an exception to maximum workinghours under "extraordinary circumstances." Few of the codes sampled in this report explicitly call for third party orindependent auditors.
This report provides an overview of U.S. interests and policies regarding China's labor conditions. It compares a cross section of labor codes of conduct utilized by U.S. corporations andtheir suppliers that manufacture toys, shoes, apparel, and other labor intensive merchandise in Chinafor export. Many consumer goods imported from China to the United States are produced by HongKong, Taiwanese, and South Korean factories in China for U.S. brands. Serious labor rights abuseshave been reported in many of these factories. All of the codes sampled in this report mandate laborstandards that are consistent with International Labor Organization core covenants and China's LaborLaw. The standards compared in this report pertain to: child labor, forced labor, disciplinary actions,discrimination, health and safety, and the environment. However, many of the codes do not provideextensive guidelines for monitoring and verifying compliance. This report will be updated aswarranted.