Shanxi is China’s major coal province and produces over 70% of the nation’s coal and coke and some 40% of China’s electricity generation.

Reported by Radio Free Asia, experts have warned that the Shanxi coke industry can only survive one or two more months of losses and without government economic support will be “wiped out”.

Well-known Chinese critic, author and economist He Qinglian was reported as saying the struggling national coal industry reflected the severe overall economic structural problems in the country.

“The real estate industry during the past few years has led to the overheating of material industries such as steel,” she said.

“Shanxi Province produces coal, coke and iron. It is called the West Delta Economic Zone.

“Now, one-third of the steel production in China is suspended, and the remaining two-thirds will be cutting back. The demand for coke is plummeting. Shanxi’s coke industry is no doubt taking the biggest hit. So are private coal mines.”

She does not see any easy solutions coming from any level of government.

“When a local industry’s crisis has grown so severe, there’s no way the local government can effectively step in,” she said.

“Additionally, who is going to buy the coke? I don’t think the Chinese government has the capability to create such a demand to cause people to buy coke and store it at home. I don’t think this is something the government could do.”

Shanxi Coke Industry Association consultant Yu Changbin estimated that over 100,000 workers in the province had lost their jobs, according to Shanxi China News reports.

Meanwhile, Shanxi Taiyuan Evening News reported the coal market was bleak in September, with Qinhuangdao – the largest export facility – having a mountain of 9 million tonnes of coal heaped at the harbour.

Even though China is a minor coal exporter, Shanxi provincial authorities reportedly will cut coal production and exports in the vicinity of 10%.

China Labour Bulletin Chinese language website editor Cai Chongguo has taken an egalitarian approach to how the current situation should play out.

“With such a crisis, it actually could serve as an opportunity to adjust China’s economic development,” he said.

“The process is going to be painful. All levels in the society will share the pain. However, it is critical not to shed all the pain on the workers and peasants, and allow the employers and the officials to be pain-free.”