By Li Weiming, Research Institute of Resources and Environment Policies, Development Research Center of the State Council (DRC)

Report No 113, 2014 (Total 4612)

Summary:

It has been over two years since China's coal economy saw a decline in operations from November 2011. Currently, the coal industry is still facing many difficulties in business operation, falling efficiency and rising losses. Many issues are due to the following reasons: change in economic situation at home and abroad, resource and environmental restraints, backward industrial transformation and upgrading, and inadequate implementation of policies. In addition, the global economy is recovering slowly and downward pressure on China's economy remains. The energy situation also limits the development in the coal industry. So, in the short term, the coal industry's tough situation isn't likely to change and may become even worse if there are no proper measures, which will have a negative impact on China's energy security as well as healthy, stable and sustainable economic development. The government and coal industry should work together, and the industry needs to solve the development problems by transformation and upgrading. The government should implement coal policies in a scientific way to create a good development environment for the coal industry.