Following the strike of taxi drivers in some Chinese cities, the All China Federation of Trade Unions has issued a document requiring taxi companies to found trade unions for their employees.

The document says trade unions will serve as a consultative mechanism between taxi companies and their drivers.

However, an editorial in "the Beijing Youth Daily" says the mechanism will provide no fundamental protection for the interests of taxi drivers.

The article points out that the real problem in the taxi market lies in the market entry and administrative license policy. Currently, Chinese cities have limitations on the number of taxis permitted and licenses issued. As a result, taxi drivers have to register with a licensed company for the right to enter the market.

The newspaper says trade unions will have no cards at hand when negotiating with taxi companies for drivers. It urges local governments to take the initiative to reverse the policy.

The article concludes by saying that other ways of reform should be explored on the basis of market principles, and taxi drivers should be better protected.