Beijing  - More than 5,000 taxi drivers in China's northwest went on strike for the second day to protest a reported government regulation that would shorten operating licences, local media reported Sunday.

The strike in Xining, the capital of Qinghai province, began Saturday night after a local newspaper reported that the provincial government had issued a regulation to shorten cab drivers' operation rights to 8 years from the current 12 years, the state-run China Daily reported.

According to the report, operating licences would be taken back by the taxi company after 8 years and redistributed.

Cab drivers worried that the new regulation would result in higher rental fees to the taxi companies in order to extend their licences, the China Daily said.

The Xining transport authorities responded by saying that it was a misunderstanding.

"The Xining government's policy regarding the taxis' operation rights has not changed," Tan Mingjun, vice head of Xining Transportation Bureau, was quoted as saying.

This latest action followed taxi strikes across the country late last year when drivers in cities including Chongqing and Sanya demanded changes to high operating fees, costly traffic fines and other working conditions. (dpa)