BEIJING: Hundreds of taxi drivers went on strike yesterday in central China over increased business costs, the latest in a series of similar protests which highlight the anxiety among workers over their incomes and job security.

The strike in Hubei province's Suizhou city came as China's Public Security Minister, Mr Meng Jianzhu, warned that 'there are lots of social problems affecting stability' as China's economic growth slows amid the global financial crisis.

Suizhou city's taxi drivers were protesting against a new government rule which requires each of them to pay a fee of 4,000 yuan (S$900) before the end of the year to keep their taxi licences, or see them confiscated.

The new operating fee is an attempt by the government to regulate the market, as previously free business licences were being illegally resold among drivers for as much as 260,000yuan, said the Suizhou Daily newspaper.

The streets of Suizhou city were empty yesterday as hundreds of drivers kept their cars at home. The city has 550 licensed taxi drivers, according to a government notice.

'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 that they remove their fee,' said a driver who gave only his surname, Chen.

The Civil Rights and Livelihood Watch, a China-based activist organisation, said in a statement that a small group of taxi drivers had gathered near the city's railway station, and another had gone to the city government to present a petition.

A man who also provided only his surname, Guan, at Suizhou's traffic management bureau said officials had not noticed the strike and refused to answer any questions.

The protest comes on the heels of a similar strike in the south-western city of Chongqing by 9,000 taxi drivers earlier this month, over rental fees and fuel shortages.

It also prompted scores of drivers in other parts of the country - including hundreds in the southern city of Shantou last week - to take similar action.

Unrest also broke out in north-western Gansu province last week when thousands of residents took to the streets to protest against a government resettlement plan.

They destroyed local buildings, including trade union and commerce offices and a Communist Party discipline headquarters. The riot was broken up with tear gas and at least 30 people were arrested.

Social stability and unemployment have emerged as China's top concerns as the export sector, a key employer especially for millions of migrant workers, has begun to show signs of strain from the global financial crisis.

Speaking at a symposium in the eastern city of Changzhou, Mr Meng yesterday urged 'local officials to be sober-minded and fully realise the importance and urgency of safeguarding social stability'.

Mr Meng, who has issued a series of similar warnings this month, told his audience 'to give priority to taking preventative measures and mobilise the public to help curb crimes and foster stability'.

Work should be improved on serving and managing jobless migrant workers, preventing juvenile crimes and resettling ex-offenders and prisoners, he was quoted as saying by the official Xinhua News Agency.

China's annual growth slowed to 9per cent in the third quarter, down from 11.9per cent for the whole of last year. Many economists expect the economy to maintain growth of roughly 8per cent next year.

Although the projected figure is enviable when compared with the contraction of other economies, it is getting uncomfortably close to the minimum pace that the government views as necessary to create enough jobs in the rapidly urbanising country.

ASSOCIATED PRESS, REUTERS