Thread: China's Jasmine Revolution Is Back: Trucker Strike Fuel Cost

China's Jasmine Revolution Is Back: Trucker Strike Hits Shanghai In Protest Over Surging Fuel Costs And Low Wages

Submitted by Tyler Durden
04/20/2011 13:48 -0400
46 comments

And now for the latest does of reality from China, which will no doubt be reported by precisely zero of the mainstream media outlets. According to Stratfor, there has been a trucker strike in the Waigaoqiao zone in Shanghai on the morning of April 20. As the attached video reports: "The protests the morning of April 20 were in one of Shanghai’s busiest container ports and they were the result of rising fuel prices and low wages. In 2008, we saw similar strikes over fuel prices as taxi drivers took to the streets across China, highlighting how inflation can easily translate into social issues. These protests come a week after residents gathered in the Sonjiang district in Shanghai on April 13 in protest of cheng guan officials, also known as urban management officials, were said to have beaten a pedestrian in a traffic dispute and Shanghai is also the area where we saw the largest gathering during the Jasmine Movement on February 27." So how much longer will China be able to pretend that its USD-pegged monetary policy, not to mention the Fed's inflation exporting efforts is contained? And how long until China's inability to contain its inflation results in a Tiananmen-lite (or not so lite) redux?

Video: From Stratfor http://www.stratfor.com/analysis/201104 ... e-shanghai

And a transcript of the video for the play button challenged.

We received news of the trucker strike in the Waigaoqiao zone in Shanghai on the morning of April 20. This is just the latest in large-scale protests in Shanghai that further illustrates rising social unrest.

These protests come a week after residents gathered in the Sonjiang district in Shanghai on April 13 in protest of cheng guan officials, also known as urban management officials, were said to have beaten a pedestrian in a traffic dispute and Shanghai is also the area where we saw the largest gathering during the Jasmine Movement on February 27.

Shanghai is one of China’s most international cities but, despite its foreign exposure, the government has clamped down on local media reports of the protests, where there’ve been rumors of several deaths. While all these issues were sparked by different grievances, combined they show the desire of people to take these issues to the street. Ultimately the biggest fear of the Chinese Communist Party is that these issues can collide, leading to ever bigger demonstrations that could be both harder to contain and control.

http://www.zerohedge.com/article/chinas ... uel-costs-

Here come the Tanks...........

China Inflation And Wage Protests Spread, Turn Violent

Submitted by Tyler Durden
04/21/2011 13:10 -0400
78 comments

Yesterday we reported news that has so far received almost no media exposure, namely that thousands of striking truck drivers had poured into Shanghai's Waigaoqiao zone, one of the city's busiest container ports, protesting over "rising fuel prices and low wages." Today, via Reuters, we learn that this situation has escalated materially, and progressed into violence: "A two-day strike over rising fuel prices turned violent in Shanghai on Thursday as thousands of truck drivers clashed with police, drivers said, in the latest example of simmering discontent over inflation. About 2,000 truck drivers battled baton-wielding police at an intersection near Waigaoqiao port, Shanghai's biggest, two drivers who were at the protest told Reuters. The drivers, who blocked roads with their trucks, had stopped work on Wednesday demanding the government do something about rising fuel costs, workers said." And while we have violent uprisings over austerity in Europe, now we have violent strikes over inflation in China? The question thus now is just how much longer will China continue to take massively ineffective steps such as RRR and rate hikes, both of which have been a tremendous failure in reining in inflation, instead of picking the nuclear option of revaluing the currency. And while many believe China may announce something along those lines over the weekend, Win Thin, global head of emerging market strategy at Brown Brothers Harriman, is not so sure and put the odds of a yuan revaluation at 25%. "With regards to currency policy, we are putting forth the following three possibilities along with odds: 1) keep current pace of appreciation (10%), 2) do one off revaluation (25%), and 3) speed up pace of appreciation (65%)." Either way, with more people joining the populist movement against inflation, China is now between a rock and a hard place: will it continue happily importing Bernanke's inflation exports or finally retaliate. Unfortunately for its economy, the appropriately called "nuclear option" of revaluation, will leave it export economy flailing. So the real question: is China ready to migrate from an export-led to a consumer-led model. Alas, the answer is a resounding no.



More on China's now violent protest: http://af.reuters.com/article/worldNews ... =0&sp=true

"I want the government to stand up to solve our problems because we cannot take this anymore. We are unable to bear the cost of operating now," said a driver surnamed Chen, 33, a native of Henan province who has been driving for eight years.

The strike comes against a backdrop of rising consumer prices and fuel price increases. China's inflation rate hit 5.4 percent in March, prompting officials to renew vows to use all available means to contain price rises.

Police arrested at least six people and beat up some protesters with batons, said Chen and another driver also surnamed Chen, 35. They declined to give their full names or the name of their company for fear of reprisals.

Both drivers, who work for a small transport company, showed photographs to two Reuters reporters of police carrying a man with a bloodied head, with his wife and daughter at his side.

Repeated calls to the Shanghai public security bureau and the municipal government went unanswered.

Worse, the strikes are now metastasizing to other cities:

Truck drivers also staged strikes in other ports in Shanghai including Baoshan and Yangshan, the drivers said.

The strikes and protests, if they continue, could become a worry for the ruling Chinese Communist Party, which fears public discontent that could erode its authority and alarm investors.

Workers say their wages have not kept up with rising prices.

One wonders why the Chinese, living under an authoritarian regime are willing to engage in violent protests with far more dangerous personal consequences, while the American peasant continues to gladly accept $5 and soon $6 oil:

The 33-year-old Chen said his disposable income had fallen to 4,000 yuan (370.28 pounds) a month, from 6,000 to 7,000 yuan a month last year.

The 35-year-old Chen said he was still on strike, together with what he estimated were thousands of others.

At a parking lot three blocks away from the protest site, about 30 anti-riot policemen arrested two truck drivers and dispersed a crowd of 50 to 70.

Earlier, other truck drivers had driven past, shouting to their fellow drivers to "join the strike, stop driving."

What is sure, is that the immediate impact of the strike is already being felt:

ROE Logistics, a Montreal-based customs broker and freight forwarder, issued a statement on Wednesday about a strike at a Shanghai port, saying it could result in delays.

"Delays in receipt of export containers may result in possibleknock-on effects to sea freight with possible delays or rollovers from carriers," the firm said.

An employee in Shanghai from another shipping company, New York-based Ocean World Lines, confirmed there had been a strike but declined to give other information.

"This is a sensitive topic. I really don't have any other information," Max Wang told Reuters.

And while it is logical that China's propaganda machine would not talk about this development, why other "democratic" countries have said nothing about this is just a little strange:

China's state media has been silent on the protest, underscoring the sensitivity of unrest for the ruling Communist Party, which normally stamps out protests fearing a threat to stability.

China said in early April it would increase retail gasoline and diesel prices by 5-5.5 percent to record highs.

The good thing is that China now has hit its breaking point. Any inflation beyond current levels will only make matters worse. So the ball is in the politburo's court. Alas, as central planning does all too well, expect the decision taken to be the worst possible one for both China's and the global economy.

h/t Christopher

http://www.zerohedge.com/article/china- ... rn-violent