By Zhou Jianqi, Enterprise Research Institute of DRC

Research Report No 22, 2015 (Total 4707)

Abstract:

Since 2012, the economic benefit of coal industry has been largely decreased and coal enterprises have fallen into predicaments across the board and met with a number of obstacles in the course of adjustment and transformation. Take six big coal groups in Shanxi province as an example. With heavy social burden increasing enterprises' costs, it has become hard for enterprises to make a choice whether to increase capital investment in some areas or pull it out from some others due to institutional obstacles. As a result, the power monopolization hampered the comprehensive utilization of coal, administrative circulating management hindered the ability of market service of coal enterprises, and the coal groups merged through administrative measures did not realize effective integration. It is suggested that relevant measures should be taken as soon as possible to take the systematic shackles off from coal enterprises and alleviate their unreasonable burdens, such as reducing social burdens placed on coal enterprises; while withdrawing from those coal mines with inadequate efficiency, advancing coal-based industrial parks with high yielding benefits through institutional reform; building a high-level and modern coal circulation system based on de-administration reform related to current transportation and trade; and accelerating the reform of State-owned companies to sharpen the competitive edge of large-scale coal enterprises.