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What does China’s coal shortage mean for trade?

Chinese demand for the fossil fuel is soaring. So why is supply lagging behind?

Tackling record commodity prices is on the minds of the Chinese Communist party’s top brass. And that raises questions over the production and trade of the country’s prime energy source: coal.

At a state meeting chaired by Chinese premier Li Keqiang last month, one line in particular will have jumped out to environmentally minded observers: the idea of tapping the country’s “rich coal resources”.

In September last year, China declared its commitment to reach net zero carbon emissions by 2060. But it still relies on coal for its electricity generation and, for now, it needs more of it.

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