We hinted several days back that increasing wealth disparities in the new consumer-led Chinese economic ascendency may soon become a factor in marketing and investment in the region. A report from the US CBS network provides some early evidence

"...Columns of helmeted military police dispersed thousands of protesters in one northern Chinese city and demonstrators overturned a car in another Wednesday, part of labor unrest fueled by anger over industrial reform that has blocked wages and benefits. Three labor leaders were detained by police.

Accounts of the unrest, which came from witnesses in the cities of Daqing and Liaoyang in the heart of China's "rust belt," suggest that protests under way since early this month may be gathering steam...

Now labour unrest is not always a bad thing just now. One need only refer to the lively union movement in the economic recovery star in Asia now - South Korea, and the strong labour movement in Australia over the past 20 years which has done little to reduce economic growth in Australia.

In both countries however, a strong labour movement while irritating to corporates, has contributed in reducing income disparities to manageable levels.

China's politics are very different of course, and how China manages salaries is an important factor in China's substantive, continuing economic growth. It also has implications for the type of social structure and consumer market that will develop in China. We have mooted that a broad working class consumer ala US, (and we add Australia and South Korea to a lesser extent today) will be slow to develop. The attention and targeting to a small economically advantaged upper middle class and usually young market sector is very sensible for the immediate and medium term future.