The Chinese state news service, Xinhua, reported on the 16th of June that violent protests in the south-east province of Jiangxi had forced authorities to repeal a new tax law.
The government of Nankang city had planned to increase the tax on furniture sales from 15th of June. Though a major industry in Nankang, furniture sales has a low profit margin, and the new tax law would have increased the tax burden, forcing many stores to close.
On the 15th of June at 10a.m., over 10,000 people gathered in front of Nankang City Hall, and the furniture mall on Highway 105. When the police arrived, people refused to disperse and ten police cars were overturned. Later that afternoon, the demonstrators moved to the Nankang exit on Ganyua Highway, paralyzing traffic in the Nankang area, and overturning more police cars.
The city government issued orders to immediately terminate all measures related to the tax law, and announced the decision through radio, television, text message, and the Internet. According to the report, Su Rong, Secretary of Jiangxi Province Committee, requested all city officials to use every means of communication to tell the people of the region that the objectionable law had been repealed, to avoid further protests.
Authorities in China rarely compromise, analysts say. That they did in this case shows that high-ranking Chinese Communist Party (CCP) officials are growing worried that local protests might spread into nationwide unrest.
On that same day, Xinhua also reported the not-guilty verdict in the tempestuous Deng Yujiao rape case. Deng had been charged with manslaughter for killing a Party official she claimed was trying to rape her. Originally Deng was judged guilty of using excessive force in self-defense.