China Taxi Drivers Strike As Economic Unrest Spreads

Hundreds of taxi drivers went on strike in central China today - the latest in three weeks of protests amid anxiety over the economy.

The drivers in Suizhou, in the central province of Hubei, are angered by a new license charge imposed by the local government.

"There's not a single cab running on the roads of Suizhou now. We will not stop the strike until the government meets our demand, which is they remove their fee," one driver told the Associated Press news agency.

The intelligence company Stratfor says the rapid spread of such strikes will worry the central government.

Drivers have long complained about the high car rental charges from taxi companies as well as government fees. But they seem particularly hard hit by the slowdown as the newly unemployed use private vehicles to start unlicensed rival services.

Several Beijing taxi drivers said overall demand had declined in the last few weeks. "Winter has come, but there are fewer customers. It's the economic crisis," said one man, who asked not to be named.

Chongqing city's 9,000 taxi drivers in early November became the first to go on strike over increased rental fees, high fuel prices and competition from private cars. Protesters pulled drivers and passengers from working cabs and damaged more than 20 vehicles.

Strikes quickly followed in Hainan, Gansu and other provinces. Last week as many as 1,000 drivers gathered in the center of Shantou city in Guangdong during a two-day stoppage.

Meng Jianzhu, the public security minister, warned of the dangers posed by the downturn. He told officials that "there are lots of social problems affecting stability under the current circumstances".

Stratfor said in an analysis: "The regional dispersion of the protests, coupled with the short time frame in which they have occurred, raises concerns in Beijing.

"China's central government has become more tolerant of short public protests in recent years, and even collective labor action, as long as the protests remain localized. Beijing's biggest fear is the linking of common causes across provinces, creating the potential for a mass movement that could challenge government control.

"For the moment, the taxi strikes ... remain locally organized, if inspired by reports of similar strikes in other regions. Nevertheless, there are other social issues being exacerbated by the current economic downturn that could evolve into a more coordinated movement, something Beijing will be watching closely."

Last week, a commentary in the official China Daily newspaper argued that the whole taxi industry needed thorough reform. "The occurrence of incidents across the country in the past ... shows that any minor issue could escalate into a more serious one in the absence of a communication mechanism," it said.