Chinese police forces have managed for now to control the social unrest in the southern manufacturing city of Zengcheng after the workers set fire to government buildings and installation over the weekend.
The event is seen as the warning sign as the economist says the discord is more pain for markets than the china’s soaring inflation."I think that any amount of cracking down is going to be a little bit like in Syria," Enzio Von Pfeil, CEO of the Economic Time Bond Fund told on CNBC. "You've put out the flame in one section of the kitchen but then another flame erupts in another section of the kitchen."
The reactions were sparked after a pregnant woman was manhandled to the ground by security force who tried to remove her food stall in Zengcheng, located in Guangdong province of China.
The primary issue is that such minor incident should not led to massive protest, but it happening and happening with mass participation so this is the sign of worry in the region.
The problems such as endemic corruption and the lack of rule of law were heightening concerns amid rising prices, is becoming intolerable, the spread of this news on social networking sites is further propagating the unrest.
Von Pfeil believes the problems are also aggravated by the household registration system, known as Hukou, which provides social benefits only to registered residents of a city and discriminates against migrant workers. "People are getting caught between having migrated to a new job, not getting the job, and then not having the social benefits."
The toe current is gaining momentum and the Middle East issues are further fueling; possibility burst can’t be rule out amid worsening economy in China.
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