Striking Chinese truck drivers have won concessions in their battle against rising costs that threatened to disrupt Shanghai, the world's biggest port.
The regional Government has intervened to reduce some of the increase in fees that triggered strike action in an attempt to take the heat out of an issue that has demonstrated China may be encountering growing social unrest as it wrestles with an inflationary surge.
Drivers were protesting against the increase in port service charges linked to dearer fuel. There were ugly scenes when some striking drivers threw stones at lorries driven by non-strikers.
The Shanghai Municipal Transport and Port Authority has also agreed to cancel a fuel surcharge and lower others in the container and road transport business.
Government officials are due to meet truck driver representatives on Monday to try to end the strike. Some drivers said they would continue to strike unless they were offered a better deal and there were reports that text messages threatening violence against non-strikers are still circulating.
No mention was made about the strikes in official announcements about the fee concession but the decision to defuse the situation reflects concern about the spread of industrial action as the increase in inflation starts to run through the economy.
A 12pc annual increase in the cost of food and an inflation rate now running at 5.4pc has led the Beijing administration to raise interest rates and pressure companies into delaying price rises.
Prime minister Wen Jiabao is worried that the inflation "tiger" could lead to social instability. The authorities are attempting to counter the growing volume of online traffic calling for a "Jasmine Revolution" and dozens of dissidents have been detained.
Foreign buyers are feeling the knock-on effects as Chinese manufacturers blame rising labour and commodity costs for sizable increases in the cost of a wide range of products. Visitors to Chinese trade fairs say they are being faced with either reducing orders or trying to pass on the higher costs to their western customers.
Source: www.telegraph.co.uk
The regional Government has intervened to reduce some of the increase in fees that triggered strike action in an attempt to take the heat out of an issue that has demonstrated China may be encountering growing social unrest as it wrestles with an inflationary surge.
Drivers were protesting against the increase in port service charges linked to dearer fuel. There were ugly scenes when some striking drivers threw stones at lorries driven by non-strikers.
The Shanghai Municipal Transport and Port Authority has also agreed to cancel a fuel surcharge and lower others in the container and road transport business.
Government officials are due to meet truck driver representatives on Monday to try to end the strike. Some drivers said they would continue to strike unless they were offered a better deal and there were reports that text messages threatening violence against non-strikers are still circulating.
No mention was made about the strikes in official announcements about the fee concession but the decision to defuse the situation reflects concern about the spread of industrial action as the increase in inflation starts to run through the economy.
A 12pc annual increase in the cost of food and an inflation rate now running at 5.4pc has led the Beijing administration to raise interest rates and pressure companies into delaying price rises.
Prime minister Wen Jiabao is worried that the inflation "tiger" could lead to social instability. The authorities are attempting to counter the growing volume of online traffic calling for a "Jasmine Revolution" and dozens of dissidents have been detained.
Foreign buyers are feeling the knock-on effects as Chinese manufacturers blame rising labour and commodity costs for sizable increases in the cost of a wide range of products. Visitors to Chinese trade fairs say they are being faced with either reducing orders or trying to pass on the higher costs to their western customers.
Source: www.telegraph.co.uk
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