A Taiwan-funded company has slashed its defamation claim against two Shanghai journalists from 30 million yuan (US$3.75 million) to just one yuan (13 US cents).

An official at Hongfujin Precision Industry Co., a wholly-owned subsidiary of Taiwan's Foxconn that manufactures iPods for the US-based Apple Inc, told Xinhua in a telephone call that the company would apply the Shenzhen Intermediate Court to unfreeze the journalists' assets, which include their homes, bank accounts and a car.

The official also said the company would add the China Business News, employer of the two journalists, to the list of defendants.

Weng Bao, a reporter involved in the case, also confirmed the news. "This is the victory of Chinese media," he said.

The company has filed a defamation suit against Weng and his colleague Wang You over a report alleging most of its workers had to work stand up 12 hours a day and some fainted with fatigue.

The decision followed several days of public debate during which the two journalists set up their own webblogs to express their greiveness. Nearly two million people had visited the blogs by the middle of Wednesday, mostly voicing support for the journalists.

An on-line poll of 43,250 people launched by sina.com showed on early Thursday that 48.1 percent of respondents believed that Hongfujin would lose the case, 41.22 percent argued that the company and journalists would reach an agreement, 5.81 believed the company would win and the remaining 4.87 were undecided.

The survey also showed 83.22 percent of the respondents believed the two journalists did not damage the reputation of the company.

However, a reader calling himself Fanhui, the Chinese for "Objection", said, "the news report is a little bit sensational. They should investigate the case thoroughly."

Apple Computer said Wednesday it was trying to settle a dispute over alleged labor abuses at its iPod factory in China, an awkward case highlighting the challenges big companies face in living up to their codes of conduct while outsourcing most of their production, AP reported.

The case also reflects the pressures Chinese journalists confront in doing their jobs.

(Xinhua News Agency August 31, 2006)