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Hundreds of cab drivers protest fares in China

Associated Press - August 1, 2011

Beijing – Nearly 1,000 cab drivers in eastern China blocked traffic and protested Monday over a lack of government intervention into rising fuel costs. It was the latest sign of discontent over the country's surging inflation.

The cab drivers in the tourist city of Hangzhou were urging the local government to raise cab fares, which have had a starting rate of 10 yuan ($1.50) for eight years. The drivers noted that during that time gas, food and housing prices have skyrocketed.

"We're basically making no money, especially those from out of town because we don't own homes and have to rent apartments," said Wang Kuan, a driver from northern China. He said he plans to change jobs soon if the government doesn't raise fares.

The protest follows an unexpected 14.4 percent rise in food costs in June, highlighted by a whopping 57.1 percent jump in the price of pork, the country's staple meat. Poor families in China already spend up to half their income on food.

Inflation is politically dangerous for the communist government because it erodes the public's economic gains and can fuel unrest.

"I can see why a lot of the drivers are upset," said Wan Li, a Hangzhou native and a cab driver for more than 20 years. He did not join the strike. "This is our livelihood and we count on this little bit of income to survive."

Last year, strikes by taxi drivers partially shut down nearly a half dozen cities across the country, including Chongqing, the biggest metropolis in the country's southwest, and the southern island resort of Sanya.

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