Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 269 Mon. February 28, 2005  
   
Business


Chinese coal shortage may hurt world market


China's breakneck economic growth is causing a dangerous shortage of its most important energy source coal, with potential consequences for the entire world, state media warned Sunday.

Scarcity is so severe officials even worry aloud that it could cause social instability among the 1.3 billion Chinese, the China Business Weekly reported.

"The imbalance between coal demand and supply will become more acute this year," the National Development and Reform Commission said, according to the paper.

"Easing the tightened coal supply will be the first priority for us," said the commission, the nation's top planning agency.

China is the world's largest consumer and producer of coal, which accounts for about two thirds of its energy needs.

The impact of the coal shortage could be global since soaring domestic demand could force the government to cut off export quotas and push up global prices, the paper said.

Last year, when China's economy expanded by 9.5 percent, its voracious demand was a key factor in causing international prices of coal to double.