TREND: UNREST IN CHINA INCREASES AS ECONOMY GAINS
Social unrest in China is rising dramatically in the light of China’s rapid growth in the global economy. In 2010, as China’s economy grew 10.3%, the country experienced over 180,000 incidents of protests against the government. Government officials are concerned because these protests come from anger and dissatisfaction of economic injustices. Inflation and seizure of land for business development are two of the main sources of contention for the Chinese people.
Inflation is a major factor in disturbances of public order. Food prices rose 13.4% in 2011. Inflation has caused real wage increase, or wages adjusted for inflation, to be only 1% higher in 2011 in major Chinese cities. This rapid increase in cost of living has caused protests and riots across industries, from truck drivers to factory workers.
Another contributing factor to the unrest is that the Chinese government has been seizing land for business development and factory space. China has notoriously weak legal protections and corrupt government officials. Land is often taken with poor compensation to the original owners. Protest against such land grabs are often violent, damaging property and causing injuries.
As China’s economy continues to grow, social unrest is likely to continue, or even increase. Chinese employees resent the fact that their country is garnering so much wealth while its people are struggling economically. Their protests are a way of demanding a larger slice of China’s wealth. Economic stability can only be maintained by appeasing these workers and providing them a better way of life.
