BEIJING - HUNDREDS of striking Chinese cab drivers staged a five-hour sit-down protest on Sunday against a report that the authorities planned to give them licenses for a shorter period.

More than 5,000 drivers began a one-day strike on Saturday night in Xining, the capital of Qinghai province, after a newspaper said the provincial government intended to cut the validity of their operating licenses to eight years from 12.

Hundreds of disgruntled drivers congregated on Sunday morning in front of the headquarters of the municipal government, demanding assurances, the official Xinhua news agency reported.

They dispersed in mid-afternoon after officials promised to address the issue, but Xinhua said some threatened to resume their protest on Monday unless they got a satisfactory answer.

Cab drivers fear they would have to pay high rental fees to taxi companies to renew their licenses. They currently pay them a monthly management fee of 600 yuan (S$126).

'We demand a straight answer from the government,' said one protester quoted by Xinhua. 'Who will have the cab operating rights in eight years or 12 years: drivers or the taxi companies?'

A wave of taxi strikes swept China late last year as drivers protested against unlicensed competition, high fuel prices and rising rental fees against a background of an abrupt economic slowdown that threw millions out of work.

China frowns on industrial unrest, but domestic security chief Zhou Yongkang urged local governments in November to provide citizens with proper outlets to air their grievances to avoid violent disturbances. -- REUTERS