Apple's iPod manufacturer Foxconn has launched legal action against Chinese journalists with regard to a recent Mail on Sunday report into conditions at factories in China.

The Shanghai Daily reports that a Chinese court has frozen the personal assets of China Business News reporter (Wang You) and editor (Weng Bao) at a Shanghai newspaper after Foxconn sued them for $3.77 million for damaging Foxconn's reputation.

The report had alleged poor working conditions, accomodation and other complaints.

A subsequent Apple investigation disproved many of the Mail's complaints, but agreed that there was room for improvement in conditions at the plant.

The China Business News yesterday said that it "stands firmly behind its journalists and will bear all possible consequences in this case."