Protests in two Chinese cities
The Chinese government is reported to have sent thousands of soldiers and police to quell unrest in the central province of Hunan. Up to 10,000 people took to the streets in Jishou to demand money back from an allegedly fraudulent fundraising firm, a Hong Kong-based rights group said. In another protest in the eastern port of Ningbo, 10,000 workers clashed with police, the group added. Social unrest is common in China, but rarely on this scale.
The Hong Kong-based Information Centre for Human Rights and Democracy said that, in both protests, violent clashes erupted between angry crowds and local authorities. In Jishou 50 people were injured in rioting, and police arrested 20 people, the group said. According to Xinhua news agency, the protesters blocked roads and trains to demand that the government take action after a fundraising company “failed to pay them back as promised”. The Jishou government admitted in a statement that armed police were drafted in to disperse the crowds, but did not mention if anyone was hurt.
In the second incident, thousands of migrant workers confronted police in Ningbo to protest about the injury of a man in a local factory. The protests are the latest in a series of confrontations over social issues in China – many of which stem from grievances over alleged corruption and local authorities’ abuse of power. In June, thousands of people rioted in Guizhou province over claims that police had covered up the rape and murder of a girl.
The Chinese government doesn’t deploy soldiers lightly to deal with social unrest. There’s also a Washington Post article that discusses the events in Jishou in more depth.
Tens of thousands of angry protesters, many of whom lost their life savings in illegal investment schemes run by legitimate real estate and mining companies, clashed with police this week in Hunan province, residents and news agencies reported Friday. Crowds in Jishou city blocked traffic and trains Wednesday and Thursday and gathered in front of government offices demanding the return of their money…..
Since 2004, high-return investment schemes have been a popular way for real estate and mining companies and even local associations of private businesses to raise money. Typically, they offer investors returns of 3 to 10 percent a month, as compared with bank account interest rates of about 5 percent a year. The funds collapse when investors panic and demand their money back en masse.
“Over 90 percent of the people in Jishou have participated in these programs,” said a Jishou shopkeeper who gave his surname as Luo and said he invested $11,428 in Sanguan Real Estate Co. for a return of 5 percent, or $571 each month. “Before the Olympic Games, some government officials already told me to get my money out quickly, otherwise I’d be in trouble.” But Luo believed he could afford to risk the money and now can’t get his money back.
Luo said other victims included laid-off workers investing their pensions and farmers who had sold their land to developers and therefore had no other way to earn a living. Some elderly residents even sold their coffins to participate, residents said. The chairman of the board of one real estate company, Fuda, was a well-known local entrepreneur and a member of the local political consultative congress, according to the Sing Tao Web site. Nearly 40 companies raised about $1 billion this way, but beginning in July, when some companies had difficulty repaying, people began to panic.
This week, demonstrators began arriving at Jishou railroad station about 10 p.m. Wednesday, a receptionist at a hotel near the station said. From nearly midnight until 8 p.m. Thursday, “there were no trains coming in or out because of the protest,” the woman said, declining to give her name.
An electrician at another hotel near the train station gave his surname as Mo and said he had invested $7,142 in April, comprising his life savings, his family’s savings and $1,428 borrowed from friends. He was promised an interest rate of 6 percent a month. “I don’t know what to do now,” Mo added. “Although the government mobilized soldiers and stopped the protest, people will not remain silent. They will continue to fight for their rights.”
These events go to show that China remains an economically divided country with the middle and upper classes doing well – those below subject to far more risk in trying to make a living and not having any practical way of seeking redress.
As an aside, I find it somewhat ironic that many Chinese have complained about the foreign media reporting of the Olympics, given that if this had kicked off then it could have seriously damaged the Games’ reputation even more than some of those controversies did. In some respects they should count their blessings that things unfolded as they did.
1
By mor
So that’s the country where the majority of the people allegedly feel so much love and gratefulness for the government. Don’t worry about tens of thousands of angry protesters as long as “literally hundreds” of people express their “high esteem” for the CCP.
September 6, 2008 @ 6:53 pm | Comment
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By A Chinese
If this event shows anything, it is that Chinese governments(local and centre) are taking too much unnecessary burderns.
It is a commom sense that investors should take their own risk while investing. It is not that they do not have choices here, they can put the money in banks, government bonds, even stock exchanges. All of which yield different returns and are associated with different degree of risks.
The ironic thing here is these investors are asking the government to clean the mess for their own opportunistic behavior, despite the warnings of risk from government. It’s ridiculous
Greater freedom means greater responsibility. In the past, government choose for the people, so it’s safe to say when things go wrong, people should ask the government to clean the mess; but now, it is the people who choose how to spend their earnings and invest, and they are now taking to the street to demand the arrest of company owners/managers for failed performance of the company!?
I guess this is why China cannot have Western democracy, because people behaves opportunistically, and do not want to take responsibilities for themselves.
September 6, 2008 @ 6:58 pm | Comment
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By Richard
Afraid so, mor. That’s part of the maddening irony – the stoic attitude of many and a sense that even though the government fucked them they still should support it. Obviously many, many, many violently disagree, as Pan records in his book (and as a million other books document), but they remain a relative fraction. Maybe the Internet will continue giving weight to their causes, but there’s no reason to be very optimistic yet. I keep going back to an article I posted some weeks ago about parents who got fucked by the government in Sichuan after the earthquake – and I mean badly fucked – but still feel like they need to support it for the greater good. A fascinating conundrum. Like my talking to people about Mao and having them recount the misery their own families went through, and then tell me how he was so great for China.
September 6, 2008 @ 11:08 pm | Comment
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By HongXing
I think we are too overreacting and sensationalist. Do we know all the facts about this incident? Therefore it is very harmful and not conducive to getting the facts straight, if we start making hasty judgment and rushing to conclusions. Perhaps something serious has happened in Hunan, but we don’t any first hand stories or witnesses, don’t have any official reports. I think until we receive official reports and first hand accounts, we should stop commenting on this issue and create even more false rumors.
Please, stop commenting on this issue.
September 6, 2008 @ 11:36 pm | Comment
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By Richard
Red Star, I think we know enough to know that some people were ripped off in an evil scheme and that they’ve been left behind by their government, some of whose members were probably on the take (based on past frauds where the swindlers – “legitimate” businesses in this case – are allowed to go unpunished. I suspect the central party will step in and try to make themselves the solver of the problem, though it is their corrupt system that allows these crimes to continue every day
September 6, 2008 @ 11:44 pm | Comment
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By Jeffrey -- New York
Speaking of protests, I just read an article about that Italian woman in Beijing who had wanted to test whether the protest zones at the Olympics were for real. She and her her son were going to go to one of the designated areas and wear “Go Green” T-shirts.
From the article by Even Osnos:
“They said, ‘It is not that we won’t approve the application. But your son is too young to protest.” Moreover, they added, protests are required to have a minimum of three people. “I said, ‘We met for nine hours and you never told me this, and, besides, I studied the new protest law, and it’s not in there.’ They said ‘I’m sorry, but that’s what our superiors told us.’ ” Parrino had hit a dead end.
Your son is too young to protest? Heh heh heh. You gotta love the Chinese.
September 7, 2008 @ 12:11 am | Comment
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By mor
Well, if Hongxing, his Highness, tells us to stop commenting, it’s certainly time for me to shut down my computer.
September 7, 2008 @ 12:14 am | Comment
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By cathy
HongXIng, “stop commenting on the issue”? Think not, discussion is good, that’s what forums are for, everyone is entitled to speculate. I wouldn’t trust 100% of the ‘offical” report. By A Chinese-I agree with you on this, if the gov’t had warn people about schemes of the companies, it’s up to each person and they have to take responsibilities for their failed judgement. I think the CCP could crack the fraudulent advertisement of some of these irresponsible financing companies though, in order to keep the game field less risky and more leveled. This kind of thing is similar to the US housing crisis, when homeowners bought into those ridiculous interest rate when they bought their homes, they were being irresponsible, and took risk, and govt shouldn’t take up the responsibilities of saving them from their own misjudgment. But this is a lesson learned by many different parties.
September 7, 2008 @ 12:15 am | Comment
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By Not_a_Sinophile
Hong King, stop with your usual BS about “do we now enough?” The only reason we don’t know enough is that the repressive, corrupt CCP controls the press the with an iron fist. The CCP rewrites history as it is made and the complacent public, either through ignorance or self-serving collusion, or both, goes along with it. If China actually had a free press then much of the unrest could be avoided because the illegal actions of corrupt government officials, policemen/thugs and greedy “businessmen” would be out in the open for all to see.
Until you can provide evidence to the contrary…….shut up!
September 7, 2008 @ 12:18 am | Comment
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By cathy
There are so many imcompetent officials working in so many levels in China, the story about the kid and mom trying to protest, and the respond they received, it’s classic bureaucratic Chinese reaction, out of fear.
September 7, 2008 @ 12:19 am | Comment
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By cathy
The free press monitors the social development and keeps capitalism healthy since people then could make better judgment on how to spend their money and investment base on different sources of information.
September 7, 2008 @ 12:23 am | Comment
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By Not_a_Sinophile
Cathy,
it’s a little off topic and though you are right to mention personal responsibility, the US government failed in its responsibilities to regulate predatory lenders. Banking, insurance and commerce are all activities that require some government regulation, mainly because humans have repeatedly proven unable to properly regulate themselves through the market alone. That’s one of the reasons we have usury laws, for example. The people most hurt with predatory lending practices are the least able, least sophisticated members of our society. They too share the American dream of home ownership and participating in the “trickle down” economy. Do they share a responsibility for trying to live beyond their means? Absolutely. Are they solely responsible for the questionable business practices of greedy bankers and mortgage brokers? Absolutely not!
September 7, 2008 @ 12:25 am | Comment
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By cathy
With the free press, they could take away some ofthe burden of the govt as they would be there to police and people would then have access to make better and informed judgments. Chinese peoople have to learn to be smarter consumers, they will learn,, every person in other parts of the world has. THis is the evolution of capitalism, but if China doesn’t allow the press to be part of the formula to policing the free market, the CCP would continue to shoot themselves in the foot.
September 7, 2008 @ 12:28 am | Comment
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By otherlisa
Do they share a responsibility for trying to live beyond their means? Absolutely. Are they solely responsible for the questionable business practices of greedy bankers and mortgage brokers? Absolutely not!
Wow, I agree with Not-a-Sinophile! That makes us two for two, right?
NPR – I think it was “This American Life” – had an amazing segment about the mortgage crisis a couple months back. Well worth checking out.
September 7, 2008 @ 6:15 am | Comment
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By Kellen
the investment stuff sounds like what toppled albania’s economy in the 90’s. not that that’s likely to happen in a place as freaking huge as china though…
September 7, 2008 @ 8:46 am | Comment
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By HongWang
China doesn’t deserve democracy. Only foreigners should have it. That is the best way for us to keep China down. Thank you, CCP. Long Live Chairman Mao!
If every foreigner on the blog said this for a month, millions of Chinese would be clamoring for democracy in no time.
September 7, 2008 @ 1:13 pm | Comment
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By Thon Brocket
Hoo. Boy. If this phenomenon is more widespread than Jishou, and the economy turns down and starts crashing these schemes, then you better take cover. From the Web, on Albania, in the aftermath:
” By March 1997, Albania was in chaos. The government had lost control of the south. Many in the army and police force had deserted, and 1 million weapons had been looted from the armories. Evacuation of foreign nationals and mass emigration of Albanians began. The government was forced to resign. President Berisha agreed to hold new parliamentary elections before the end of June, and an interim coalition government was appointed.”
This one may have BIG legs.
September 8, 2008 @ 1:24 am | Comment
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By Richard
I’m willing to believe it if i see more proof, Thon. Over the years I’ve read the most sickening, agonizing reports of thousands of poor people in China having their savings swindled away from them, Brief, painful demonstrations and skirmishes, lots of photos of marches and riots on ESWN, and then, somehow, we’re back to business as usual. Maybe this time it’ll be different. But I don’t see any reason to think so at this time. As I presciently noted yesterday, the government will step in as the knights in shining armor, put up some new rule and threaten to punish the bad guys, and then it will blow over. The joys of a one-party system with no accountability and a controlled media.
September 8, 2008 @ 2:17 am | Comment
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By Bob
@BBC – In June, thousands of people rioted in Guizhou province over claims that police had covered up the rape and murder of a girl.
Hmm, the girl was raped and murdered? Didn’t those claims turn out to be rumors? Did any BBC reporter follow it up like a real investigative journalist (i.e. one with high integrity and ethical standards) should have done?
September 16, 2008 @ 12:40 am | Comment
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By Raj
Did any BBC reporter follow it up like a real investigative journalist (i.e. one with high integrity and ethical standards) should have done?
Bob, you fail to understand that the BBC was merely reporting on the riots and the supposed reason they happened – the claims. It was not saying, as far as I can see, “a girl was definitely raped and murdered”.
September 16, 2008 @ 12:50 am | Comment
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By Bob
Raj, a short side note inserted by BBC such as “claims (that the girl was raped and murdered) were later proven to to false” would go a long way to repair the already tarnished reputation of BBC in its reporting on China. But, I don’t expect you guys understand the ramification any time soon.
September 16, 2008 @ 2:15 am | Comment
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By Raj
bob, who “proved” that the claims were false? I have heard reports that they were false, but no independent report or such.
September 16, 2008 @ 2:58 am | Comment
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By Bob
Raj, while there was not a declared “formal” proof, but numerous facts that later came out completely destroyed the credibility of the initial “claims” picked by the likes of BBC (which never bothered to correct or substantiate). Some of them are as follows:
* The dead girl had been depressed and suicidal before she drowned herself.
* The boyfriend, a poor factory worker himself, has no relation whatsoever to local official.
* Autopsies done by multiple forensic experts reveal no sign of rape.
* Cell phone records corroborated the timing of the events in the stories recanted by the friends who were with the girl shortly after she jumped into the river.
* Of course, the dead girl’s uncle was never dead (how can anyone even dispute this?)
It’s one thing to report the corruption and negligence of some Chinese officials, but it’s entirely different matter to portrait them as wanton criminals who were involved in unspeakable crimes such raping and murdering teenage girl and savagely beating the grieving relative to death. You can be assured BBC won’t be taken seriously if it continues to engage in shoddy journalism.
September 16, 2008 @ 3:35 am | Comment
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By Raj
the credibility of the initial “claims” picked by the likes of BBC
The BBC was not running a report on the death – it was mentioning the supposed circumstances behind it had to led to riots. I don’t see why it should have been drawn into the debate as to the claims’ validity – it mentioned the riots in passing only.
it’s entirely different matter to portrait them as wanton criminals who were involved in unspeakable crimes such raping and murdering teenage girl and savagely beating the grieving relative to death
Which was done primarily by the Chinese internet community, not the BBC.
September 16, 2008 @ 4:10 am | Comment
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By Bob
@Raj – “The BBC was not running a report on the death – it was mentioning the supposed circumstances behind it had to led to riots. I don’t see why it should have been drawn into the debate as to the claims’ validity – it mentioned the riots in passing only.
Which was done primarily by the Chinese internet community, not the BBC.”
Yes it did, on both accounts. You may want to dig up the old blog entry by Richard to read again. If the purpose of BBC is merely passing up the rumors (and selectively at that), then I don’t see how BBC can distinguish itself from your average London tabloid media.
September 17, 2008 @ 4:06 am | Comment