by Terrence Aym

Created on: December 17, 2011   Last Updated: December 18, 2011

China has problems. As its economy continues to slump, civil unrest is boiling just under the surface of the tightly controlled society. Some of China's officials now worry that soon the country may explode into uncontrollable riots fueled by massive civil unrest.

Warning signs first emerged as far back as 2010 that the Asian giant's economy was flagging. While subterfuge and accounting tricks fooled much of the world they didn't go far to assuage the escalating concerns of savvy international bankers and financial experts.  

Now China's lean years are staring it in the face. The economic woes of the US and EU are only serving to further accelerate and exacerbate this wheezing dragon. China's glistening bubble has popped.

Planning for revolt

The leader in charge of China's law-and-order is Beijing Politburo member Zhou Yongkang. He is spending restless nights haunting deserted hallways worrying about the emerging "negative effects" that the unstoppable Chinese tailspin could precipitate.  

Speaking to Chinese province leaders recently, Zhou stressed the need to implement new approaches towards dealing with hundreds of millions of people that have become politically active, economically aware and are feeling bypassed by China's prosperity and new middle-class. As the economy contracts, unemployment will be a problem causing many who are satisfied now to become frustrated and resentful.

Zhou called for planning a greater police presence in the cities and countryside  and more funds for the unemployed as a means to stave off massive protests and countrywide unrest.

"Especially when facing the negative effects of the market economy, we still have not formed a complete mechanism for social management," Zhou warned. Creating a system to effectively deal with general unrest, "is the great and urgent task before us."

Flashpoints

Zhou's warnings were still ringing in their ears when Politburo members learned that a new rebellion had broken out in Wukan. The city of 20,000 is located along the coast not far from Guangdong Province's important industrial complexes.

According to urgent reports, the people burst into "open rebellion" against government officials. Many blocked highways, armed themselves and drove off government authorities. Heavily armed para-military police were deployed and blocked the city dwellers access to critical food and water supplies attempting to quell the insurgents. [Village Revolts Over Inequities of Chinese Life]

For Chinese leaders, such

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