It plans to recruit more members from the company even if Foxconn sets up its own trade union, Duan said.

Liu Zhongxian, a spokesman for the company, said it planned to set up its own union this month.

"We started making preparations in November. But I was not aware that the city trade union was setting up one for us," Liu was quoted as saying in media reports.

The company had sued journalists of China Business News for their reports, demanding 30 million yuan in compensation.

But it later reduced its defamation claim to only one yuan in August and dropped the lawsuit in early September.

The company and the newspaper released a joint statement, apologizing to each other, pledging to collaborate to protect workers' rights and to contribute to building a harmonious society.

Under the law, companies must recognize trade unions and contribute two percent of staff salaries as membership fees.

An investigation by the National People's Congress three years ago found that some foreign-owned companies, including shopping giant Wal-Mart, had not established labour unions.

Wal-Mart subsequently established its first labour union last July.

As of September last year, about 62 branches of the company in more than 30 cities had established their own labour unions, with a total membership of about 6,000.

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