At the world's largest port, China's inflation problem boils over

[Newsjock]

Source: The Globe and Mail

At the world’s busiest container port, China’s inflation problem is becoming an obstacle to global trade.

Incensed by spiking fuel costs and consumer prices, truck drivers hauling goods to and from the Port of Shanghai went on strike Wednesday, triggering a major confrontation that drew hundreds of police officers after truckers reportedly blockaded the entrance to a local logistics company.

Even as the crackdown turned violent, the truckers vowed to continue their protest at the port, which moved almost 80,000 containers a day in 2010 and overtook Singapore to become the busiest container port on the planet. The standoff, which is already making an impact on the flow of goods in and out of Shanghai, highlights the challenge that worsening inflation poses to policy-makers in China.

Spurred by a 12-per-cent jump in food prices, China’s annual inflation rate surged to 5.4 per cent in March, the highest in more than two-and-a-half years. The potential for runaway inflation is a serious concern for the Chinese government because, in the past, major consumer price increases have led to civil unrest. Inflation has become the hot-button issue among China’s 1.3 billion citizens: many are struggling to make ends meet as the price of basic necessities such as food has skyrocketed following a frenzied run-up in real estate values.

Read more: http://www.theglobeandmail.com/report-on-business/economy/at-the-worlds-largest-port-chinas-inflation-problem-boils-over/article1995984/

[leftstreet]

1. K&R and some pics

AP Photo 16 hours ago Trucks run on a road near a port where a protest was held by truck drivers, Friday, April 22, 2011 in Shanghai. Truck drivers protested Friday for a third day over rising fuel costs and fees, disrupting the flow of goods. The protests that began Wednesday are the latest sign of rising public anger over surging inflation that communist leaders have failed to tame despite repeated promises.



Reuters Pictures 20 hours ago A man throws a rock at a truck during a strike at an area near the port in Shanghai April 22, 2011. Striking truck drivers gathered for a third day on Friday in Shanghai's main harbour district amid heavy police presence and signs the action has already started to curb exports from the country's busiest container port. Some threw rocks at trucks whose drivers had not joined in the strikes, breaking the windows of at least one truck.



AP Photo 16 hours ago A police officer stands guard near a port where a protest was held, Friday, April 22, 2011 in Shanghai. Truck drivers protested Friday for a third day over rising fuel costs and fees, disrupting the flow of goods in China's busiest port city.