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in china, people dont trust government, but believe their power.

imho, they may peacefully pass 2012.

Qingyu, do u see lots more foreclosure of Chinese small firms?

Chinese officials told to tackle seeds of unrest amid slowdown
By Patti Waldmeir,Jamil Anderlini in Shanghai, in Beijing

Beijing has underlined its concern that an economic slowdown could lead to social unrest, with Chinas security chief urging local officials to do more to prepare for the negative effects of the market economy.

Zhou Yongkang, a member of the politburo, told provincial officials that they needed to find better methods of social management, a euphemism that can include everything from better internet censorship and strategic policing of violent unrest to a better social safety net.

It is an urgent task for us to think how to establish a social management system with Chinese characteristics to suit our socialist market economy, he told a seminar. Especially when facing the negative effects of the market economy, we still have not formed a complete mechanism for social management. He urged officials to limit spending on vanity projects that spark public anger.

His comments are the clearest sign yet that Beijing is worried that the global economic crisis could lead to serious domestic social unrest. The remarks, published by the state-run Xinhua news agency on Saturday, came at the end of a week which saw evidence of a slowdown in Chinese manufacturing, an easing in credit policy to avert a sharper slowdown, and two outbreaks of violence.

Recent months have seen a rise in incidents of unrest apparently linked to economic grievances, including fears about the economic dislocation caused by Beijings long-term plan to move away from low-value manufacturing to more creative and innovative industries.

Last week in Shanghai, workers clashed with police at a Singaporean consumer electronics supplier during a strike over lay-offs due to a company relocation, China Labor Watch said.

Xinhua reported that on Friday, violence erupted in the city of Xian, with hundreds of people overturning police and government cars after police took more than two hours to arrive at a scene where a girl had been killed by a construction truck.

Last month, more than 10,000 workers in Shenzhen and Dongguan went on strike to protest against cuts in overtime which they rely on to supplement meagre basic pay.

Many analysts believe double-digit inflation and a slowdown were important contributors to the 1989 Tiananmen Square protest and resulting massacre.

"The PBOC said yesterday it cut the reserve requirements on 5 rural banks by 50 bps to 15% as part of long-standing efforts to support the rural economy"

the truth is rural banks have the most serious bad debt problem.