Wal-Mart's agreement to drop its worldwide rejection of unions in all of its Chinese outlets undoubtedly gives the country's union leaders a much-needed shot in the arm.

Since the establishment of the first trade union in one of its stores two weeks ago, Wal-Mart, the world's leading retailer, has seen unions rapidly set up one after another in its 60 Chinese outlets.

The significance of these cases is obvious for the All-China Federation of Trade Unions (ACFTU).

If a giant transnational company like Wal-Mart that has long refused to accept trade unions can change its mind, it is more than likely that most foreign firms can be persuaded to observe a "national treatment" that they have largely ignored.

While most Chinese enterprises have set up trade unions in line with the country's related laws, only about one in four foreign-funded companies have so far formed unions to represent their workers.

Since 2004, the ACFTU has been pushing hard to establish more unions in foreign firms in China. And the Federation has made a major push this year for foreign-funded or transnational companies to unionize.

By expanding its presence in foreign companies, the ACFTU aims to enhance protection of the legitimate rights and interests of workers while achieving a win-win result between labour and management through securing mutual benefits.

Foreign-funded companies have already grown into an increasingly important driving force for the Chinese economy due to the country's reform and opening up over the past quarter of a century. More and more Chinese workers have found jobs in foreign companies in recent years.

While continuing to tap foreign investment, it is necessary to ensure that workers in these companies enjoy equal protection as those in domestic enterprises.

The formation of trade unions is only the first step to bring into place a needed mechanism. To make it work and substantially raise labour standards will require more efforts from all sides.

It is a matter of fact that a number of enterprises, with or without trade unions, in this country used to make profits at the expense of fair wages and working conditions. Such infringement on workers' legitimate rights and interests should not be tolerated.

Though China has an abundant labour force, companies in the country should not always base their competitiveness on low salaries for workers. Be they domestic or foreign firms, they are all encouraged to raise their profitability through innovation. Meanwhile, trade unions should play a more active role in workers' interests.

For China's union leaders, it is no time to celebrate. To build the country's trade unions into an effective pro-worker force as powerful as their numbers suggest is a task more demanding than setting up more of them.