The present position and future development of the Chinese coal industry

The Chinese coal industry is the largest coal producer in the world. The total production in I995 was 1.28 bnt. On the way towards introducing a market economic system, this mature industry is facing major challenges. The main problems are a large surplus of manpower, shortage of current assets and capital, low productivity, high casualties and a huge deficit. This paper discusses the present situation and the future developments in the Chinese coal industry. The current policy can be stated as ‘rapidly developing the state collieries and improving the village and private mines; integrated development to achieve an economic operating scale and encouraging a diversified economy; rapidly exploiting and developing in the North west and South west; promoting productivity and efficiency; welcoming multi-sources and types of investment; setting up coal exchange markets; and the careful control of resources and the environment'.