Chinese city offers deal to end taxi strike

China's eastern city of Hangzhou on Tuesday offered its taxi drivers a subsidy of one yuan ($0.16) per trip in a bid to end a two-day strike in the tourism hub. The subsidy will be offered with immediate effect and fares will be raised before October, the local government said in a statement.Thousands of disgruntled taxi drivers went on strike on Monday over a host of grievances including high fuel prices, traffic congestion, fees paid to their companies and unlicensed vehicles that they say are whittling away their earnings.The local government said it plans to hold a public hearing with taxi drivers before finalising the new fares. The subsidy would end once the fares are hiked.The new measures are aimed at raising the incomes of drivers and improving the operating environment, it added.City residents commented on various micro-blogging sites that drivers remained defiant on Tuesday even after the government announcement.China has experienced periodic strikes by taxi and truck drivers, mostly over soaring expenses.In April, truck drivers in Shanghai went on strike over rising fuel costs, disrupting operations at the city's ports.Taxi drivers in the central city of Yueyang went on strike and then rioted over payments to their companies in 2009.Observers say their anger reflects mounting public dissatisfaction in China over rising prices, with inflation hitting a three-year high of 6.4 per cent in June.