Mainland China’s coal resources have three great advantages: abundant supply, high quality and it’s cheap. All of the countries of Asia have wanted to have access to Mainland China’s supply of coal because of the Mainlands close proximity ensuring reliable and convenient shipments. Mainland China’s coal resources have already become an import means of earning foreign exchange. From an economic viewpoint, Mainland coal is very attractive to Taiwan’s industries for the three reasons mentioned above. As a result, there is a large demand in Taiwan for Mainland coal.
The development of coal production and export is vital to the future growth of Mainland China’s economy and is also important to Taiwan for energy production. The following questions are, therefore, important and should be studied:
1) What is the production capacity of Mainland China’s coal industry?
2) Would there be any transport problems?
3) What is wrong with the industry in Mainland China now?
4) What factors should be considered by Taiwan’s coal importers (source, transportation, price contract laws of the exporting country)
These questions concern the private business sector, the trade sector, and the government sectors who deal with economic and trade development.
