Wal-Mart Stores (WMT) is the target of a new, unflattering report about the Chinese labor practices of some of its suppliers.

New York-based China Labor Watch (CLW), has released a report on its investigation of Wal-Mart Stores, Inc. [[WMT]] Chinese supply chain’s labor practices.

The report notes that due to consumer scrutiny, Wal-Mart established corporate responsibility standards for its Chinese supply chain that are enforced through factory audits. However, CLW reports that factories exploit and cheat on their commitments.

CLW investigations from April to June 2009 of Walmart suppliers Huasheng Packaging Factory and Hantai Shoe Factory found alleged violations including:

• Some workers make only $0.51/hour, 60% of the minimum wage.
• Poor working conditions: workers inhale large amounts of paper particles and other debris.
• Twelve workers live together in cramped dorms.
• Workers not paid overtime wages.
• During busy season, workday is 11 hours or 77 hours per week, and overtime is mandatory.

Clearly these violations raise ethics concerns among many, but even callously setting aside such concerns (or arguing, as some do, that even if these allegations are true, the workers are still better-off than they otherwise would be) Wal-Mart should be concerned about continued attention to its labor practices given its history of mixed public relations management.

The company has made great strides recently overcoming villinization by union groups. It would be a serious business mistake to ignore the treatment of workers overseas and allow it to become a new cause that competitors, such as Target Corporation [[TGT]] – with its more friendly corporate facade, could exploit.

China Green Agriculture, Inc. [[CGA]], a leading producer and distributor of humic acid based liquid compound fertilizer announced that it closed the sale of an additional 525,000 shares of common stock at the public offering price of $7.15 per share.

The exercise of the over-allotment option brings the total number of shares sold by China Green Agriculture in the follow-on offering to 4,025,000 and the aggregate net proceeds received by China Green Agriculture to approximately $27.2 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.

The Company intends to use all of the net proceeds to expand its existing research and development through the construction of new green-house facilities. The Company estimates that these new facilities will require an aggregate investment of approximately $38.6 million over the course of two years. The Company anticipates using existing cash reserves, operating profits and bank loans to provide the difference between the total required investment of the new green-house facilities and the net proceeds from this offering.

AsiaInfo Holdings (ASIA) has been selected by China Unicom (CHU) to build the software system that will allow remote diagnosis and management of cellular phones.

AsiaInfo Holdings, Inc. [[ASIA]], a provider of telecom software security products in China, announced that it has signed a contract with China Unicom [[CHU]] to build out a the system that will allow China Unicom to remotely diagnose and manage mobile devices.

The size of the deal has not yet been disclosed.

From the press release:

‘‘As China’s telecom operators look for ways to compete more effectively in a 3G environment, improving the customer experience is a top priority,” said Mr. Steve Zhang, AsiaInfo’s president and chief executive officer. ”AsiaInfo’s device management system will improve China Unicom’s customer service efficiency by allowing the company’s support team to remotely carry out processes such as parameter resets, patch downloads and application installation. By enabling users to download firmware updates, software upgrades and applications over the air, the system will also help promote new services and applications. We are confident that our leading software will continue to reduce workload and the cost of customer service as well as play a leading role as carriers expand from 2G standard to 3G standard, which enables image, audio and video content.

The system can be used to configure mobile devices to match network parameters and settings, provide diagnostics and automated resolution and enable subscribers to install new applications over-the-air. By centralizing data pertaining to mobile device capabilities, the system can match mobile devices with appropriate content platforms such as WAP gateways, MMS centers, streaming media and others. China Unicom will also be able to gather, organize and analyze static and dynamic information from mobile devices, thus supporting the advanced decision-making and targeted marketing capabilities that are essential in a complicated and competitive 3G environment.”

In a symbolic moment for China’s economy, a Chinese manufacturer has filed a patent infringement suit against major U.S. retailers including Best Buy (BBY), Wal-Mart (WMT), Target (TGT) and Staples (SPLS).

Changzhou Asian Endergonic Electronic Technology Co. filed a lawsuit against numerous U.S. retailers, including Best Buy Co. [[BBY]], Wal-Mart Stores Inc. [[WMT]], Target Corp. [[TGT]], and Staples Inc. [[SPLS]] alleging infringement on its patented design on dashboard mounts for GPS units.

Changzhou claims that the retailers are selling products made by a competitor that violate its intellectual property rights. The company is also suing the Chinese manufacturer of the product that the U.S. retailers are stocking.

The case, the firt of its kind where a Chinese company has filed a suit in U.S. court over a patent developed in China, may mark a whatershed moment for China’s place on the international economic stage. Long recongized and the world’s most important up-and-coming player, China has still been seen only as a limited force in business: offering incredibly cheap manufacturing and a burgeoning consumer class to sell to but little else.

This suit may turn attention to the innovation happening in China while also spurring more of it.