Without a quick turnaround in the global and Chinese economy, this situation could become ugly very quickly. Time is not the friend of the Beijing government these days. It's disappointing that Hillary turned her back on the human rights issue so quickly during this critical period of change, though she never was expected to be very progressive.
The Chinese authorities are training police forces around the country to deal with potential labour unrest as unemployment rises at its fastest rate for decades. President Hu Jintao has called on the army to remain loyal in the face of growing discontent at the first downturn many Chinese have ever experienced.
The global economic slump has already led to 26 million migrant workers, out of an estimated 130 million in China, losing their jobs. Collapsing export markets for Chinese toys, shoes and electronics have caused the closure of 670,000 small and medium-sized companies in the country, many of them based in the manufacturing areas of the south.
Workers have protested in the one-time boom towns of southern China’s industrial belt as foreign companies pull out. Outlook magazine, published by the official Xinhua News Agency, has warned that slowing economic growth may provoke anger, in particular among migrant workers and university graduates, and senior security officials have held conferences on how to stop instability taking hold.
