Furniture makers protest higher taxes in east China

BEIJING, June 15 (Reuters) - Hundreds of Chinese furniture makers overturned police cars and blocked roads in the southeastern city of Nankang on Monday, to protest a government plan to raise taxes on an industry already suffering from a decline in demand from export markets.

The protest, which shut a main highway for several hours, subsided after the local government backed off.

China has poured money into its economic stimulus programmes, in part to offset unemployment and potential unrest during the downturn in the global economy.

But much of the support has gone to state-owned firms and infrastructure development, leaving export-dependent industries like furniture, which are dominated by small, private businesses, still very vulnerable.

A furniture entrepreneur told Reuters that there were over 10,000 protesters, some of whom were hurt in clashes with police.

"They smashed dozens of police cars," said the furniture entrepreneur, surnamed Guo, who refused to give his full name.

The government told protesters the new policy would be temporarily suspended, Guo said.

Calls to local police went unanswered. Pictures and videos circulating on Internet showed police cars overturned while hundreds of people gathered on the road. (Reporting by Yu Le and; Editing by Jeremy Laurence)