http://www.marxist.com/the-riots-in-tibet.htm
Both the Chinese and western governments seem to be making the Dalai Lama the central issue, thereby avoiding the main problem, which neither wishes to face.
Here's a snippet from the article (I believe Heiko Khoo is a researcher for Amnesty):
The ‘average wage' in China's cities as a whole is 14,000 Yuan a year, (US$1800) but wages in Tibet are nearly double the average, higher than in Shanghai and second only to Beijing. State sector employment accounts for nearly 94 percent of employment in Tibet as opposed to 66 percent in China's cities on average.
The problem is that such relatively well-paid state employment is disproportionately allocated to people of ethnic Chinese backgrounds. Higher wages are justified on the basis that living in Tibet takes you far from family and friends and often causes serious health problems due to the effects of high altitude. Tibetans, whose skills are generally lower than the ethnic Chinese migrants, look on them as a deliberately privileged layer.
Alongside the influx of state employees, engaged in administration and infrastructure projects, has come an influx of ethnic Chinese traders and to a lesser extent Hui Muslims, whose businesses thrive on the high spending power of state employees and tourists. Their nationwide networks mean Tibetans can't compete with them. The boom in Tibet has encouraged all manner of migrant entrepreneurs to open shop, including beggars' rackets and sex workers. Tibetans often think they too are subsidized by Beijing. Thus it is easy to see wherein the roots of ethnic discontent lie.
All over China the wage levels of workers have not risen in line with the economic boom. Under pressure from the army of migrant workers and the rapaciousness of private sector employers, wages for many have been frozen. According to the All China Federation of Trade Unions (ACFTU) 26% of China's workers have not received a pay rise for five years despite the economy growing at an average of 10.6%. Profits have been boosted not only by new machinery and work methods but also by holding down wages. The ratio of overall labour costs to GDP has fallen from 53.4 percent in 1990 to only 41.4 percent in 2005.
Given that so much of what constitutes the western lifestyle is now manufactured in China (i.e. made possible by China's inequality) it seems inadequate to focus on western inequality alone.