Chinese state media yesterday took the unusual step of telling the world that protests in the Tibetan capital of Lhasa had spread to surrounding provinces.

Just how significant this latest upsurge in violence will be remains to be seen but, after speaking to a well-placed source, there appears to be a genuine feeling in China that the unrest in the annexed mountain kingdom could soon spread well beyond Tibetan borders – which could result in potentially serious consequences for those companies sourcing and operating within the country.

Part of China’s attraction over the past decade has been its stability. Despite the relative lack of freedom afforded the Chinese population in everyday life, the country’s government has poured investment into an economy that has, and still is, growing exponentially. A wealthy population is, from the Chinese government’s point of view, a satisfied one. .

Now, however, as unemployment levels in the country rise in line with inflation, that could soon change. Trouble in Tibet and ongoing talk of an Olympic boycott are doubtless giving the Chinese government a headache, but if the unrest spreads to the wider population that could spell serious trouble - not just for those in Beijing, but for an already fragile global economy.