Top official meets rioters as China seeks stability

BEIJING (Reuters) - The governor of China's poverty-stricken province of Gansu traveled to a riot-hit town to sit down with protesters after pitched battles with police that injured dozens, state media said on Friday.

Xu Shousheng held a meeting with 10 representatives two days after the riot, a rare concession by a top leader and a sign of government concerns about stability as the economy slows. The protests were sparked by local residents' worries about a government resettlement plan after the May 12 earthquake killed more than 80,000 people and made 1.8 million people homeless in Sichuan and neighboring provinces.

Xu told the group he met that the changes in Wudu town were only in the planning stage and could be vetoed by the central government. He also promised to protect their livelihoods if the resettlement gets the go-ahead.

After decades of solid economic growth, China is battling an unknown as falling demand for its products triggers factory closures, sparks protests and raises fears of popular unrest.

Estimates of the number who joined in the violence on the streets of Wudu range from an official total of 2,000 to as high as 20,000 cited by local residents.

They destroyed local buildings including trade union and commerce offices and a Communist Party discipline headquarters and afterwards grocery prices went up by nearly half. The riot was broken up with tear gas.

Xu said Beijing plans to invest over 20 billion yuan ($2.93 billion) in the area's infrastructure over the next three years and a major train line set to run through the town should also provide a boost to the local economy.

Minister of Human Resources and Social Security Yin Weimin said on Thursday stabilizing employment was the top priority for China as he revealed a rise in jobless workers triggered by the weakened export sector.

(Reporting by Emma Graham-Harrison; Editing by Nick Macfie)