China warns economic woes could trigger major unrest

CHINA: China's state media has issued an unusually candid warning of the risk of mass riots this year, in what observers said Wednesday reflected increasing jitters about the global economic crisis.

Outlook magazine, an authoritative weekly published by the Xinhua news agency, said in this week's edition that the economy might become so bad in the coming months that China's social fabric could start unravelling.

"Due to deepening economic difficulties and social security problems since the second half of 2008, enterprise closedowns, layoffs and labour disputes have significantly increased, triggering a rise in mass incidents," it said.

"Economic pressures affect the sentiment of various social strata, and disadvantaged groups in particular are seeing their livelihood threatened. Their pent-up discontent could easily burst out... and spark mass conflicts."

According to one ominous statistic cited in the magazine, close to 10 million migrant workers out of a total of 120 to 130 million have lost their jobs as crises overseas have hit the nation's export-dependent economy.

BEIJING, Wednesday, AFP