Two thirds of the 3,329 taxis in east China's Wenzhou City stopped business Tuesday morning, and dozens of cabbies were smashed as their drivers refused to join in the strike.
Taxi drivers told Xinhua said they were protesting against low incomes because of rising rental fees.
The license price for a taxi has risen from more than 200,000 yuan (about 30,000 U.S. dollars) in the 1980s to 1.2 million yuan. Taxi owners usually subcontract cars to agents who hire drivers from Anhui and Hunan provinces.
As owners and agents charge high rental fees, drivers said they could only earn up to 3,500 yuan even if they worked for 12 hours.
The government arranged for more than 100 taxis to provide essential transport around the city's airport, railway and bus stations and docks. The police are to charge eight suspects who allegedly vandalized taxis.
The strike continued Tuesday afternoon.
Source: Xinhua