Trade unions among foreign foreign-funded companies in China's commercial capital is set to increase next year covering 80 percent of the units, local authorities said.

More than 1,800 trade union branches were established among foreign-funded companies in Shanghai in 2006.

The local authorities said 99 of the 358 companies, which were listed in the Fortune magazine's top 500 companies, have already set up trade unions here.

Presently, 8,061 foreign-funded companies in the Chinese financial centre have set up trade unions, said a spokesperson for the Shanghai Municipal Council of Trade Unions.

Wal-Mart, which has been widely criticised by human rights groups and labour organisations because it has traditionally not allowed trade unions in its outlets, set up its first trade union in Jinjiang City, Fujian province, in July 2006.

Since then at least 60 Wal-Mart outlets in China have set up trade unions with more than 6,000 members in cities such as Shenzhen, Nanjing, Jinan, Fuzhou, Shenyang, Dalian, Nanchang and Shanghai.

Kentucky Fried Chicken, McDonald's, Roche, Pepsi, French bank BNP and Kodak have all followed suit.

Intel and other foreign-funded companies would set up trade unions in their Shanghai outlets in the first quarter of next year, the spokesperson said.

Chinese trade union authorities have warned that the new unions being set up should abide by the country's trade union laws, and should give priority to safeguarding employees' rights while accelerating corporate development.