The management refused to appear and the local mayor told the crowd to disperse. In retaliation workers blockaded the entrance to the headquarters and occupied the centre of the town to prevent any access to the mine. Over the next days, workers clashed with and fought off hundreds of riot police brought in from nearby cities, who used tear gas and baton charges in attempts to disperse the protest. On February 29, detachments of the Peoples Liberation Army entered Yangjiazhangzi and finally drove the workers off the streets by firing live rounds over their heads. The town was kept under virtual martial law until the end of March.
Officials claim that negotiations are underway with the miners over the terms of the redundancy.
But the police have singled out workers as ringleaders and arrested them. Seven to 10 million jobs have been targeted for elimination this year, on top of 30 million state-sector workers who have been laid off since 1997. Thousands of small to medium firms have been sold off to private buyers or closed down. Restructured enterprises are reneging on pension payments owed to retired employees and unemployment insurance owed to laid-off staff. At the same time, the gap between rich and poor has widened dramatically as entrepreneurs accumulate businesses and property.