Nike accuse local suppliers of violating product code

March 27, 2008 - China

Nike, which is recognized as an established brand and the largest producer of sports shoes and clothes, has recently filed a complaint against its Chinese suppliers.

The company has accused Chinese manufacturers of Nike products of forging documents and employing child labors.

China will not only have to comply by the product code set up by Nike but will also have to follow the Chinese laws. After this present crisis, the company is determined to supervise all the supplies made for 2008 Beijing Olympic Games.

In 2005 and 2006, Nike claimed back salary amounting 6.53 million yuan for Chinese workers while in 2007, it demanded about 0.50 million yuan for Chinese workers.

The situation is quite crucial for Nike since on the one hand China is hosting the 2008 Beijing Olympic Games and on the other, the country is the largest supplier to the company.

China hosts some 180 factories manufacturing sport shoes and clothes for Nike and engages about 210, 000 Chinese workers.