Reuters is reporting on an official Chinese government report that predicts major social upheaval and mass protests in 2009. While much of this is driven by economic and unemployment problems, this cannot be circumscribed to those areas — the problems are social too.

The Outlook report also stressed the nation’s strains were about more than growth rates. Protests were increasingly politicized, making it harder for officials to douse them by force or cash hand-outs, the report said.

“Social conflicts have already formed a certain social, mass base so that as soon as there is an appropriate fuse it always swiftly explodes and clashes escalate quickly,” said Huang.

The article points out (and I agree) that the candor of the report is meant to shake people in the government into treating these issues seriously and readying adequate responses. It’s a sign of the extent to which the Chinese Communist Party recognizes that their hold on power is tenuous. If circumstances don’t go well for them, they are at grave risk to lose their hold on power.