The central leadership has warned regional cadres to guard against 'anti-government elements' stirring up trouble around the handover - or lose their jobs.
Authorities in large cities have asked police and para-military police to be on alert until mid-July.
Chinese sources said yesterday the party leadership issued a nationwide warning that anti-government elements might take advantage of Beijing's preoccupation with July 1 to launch a campaign of violence.
The circular described 'dangerous elements' as the jobless, underground gangs and dissidents.
It also warned that separatists in Xinjiang and Tibet might upgrade their attacks.
The circular hinted at the possibility of anti-government forces 'colluding with hostile foreign forces'.
It said that since the New Year there had been signs of increased anti-Beijing acts.