Mongolian infrastructure issues obstruct coal exports to China

Another major challenge facing China since the global pandemic began was the shortage of coal. This is a test of the country’s economic potential and its ability to run its domestic coal mines at full capacity.

In October 2020, Chinese state-owned companies’ decision to suspend Australian coal imports was seen as a response to Australia’s more critical approach to China.

Australia’s coal restrictions are creating new opportunities for the rest of the region, especially in East Asia and Northeast Asia, to make up for China’s coal shortages.

China has stepped up its efforts to involve Russia, Mongolia, and other third parties to make up for its coal shortages. However, Mongolia, China’s largest coal supplier in northwestern China, has seen a 50 percent decline in the past two years due to its inability to fully address its coal export infrastructure problems.

China, which relies heavily on coal, is the world’s largest emitter of greenhouse gases, producing more than 53 percent of the world’s total coal-generated power in 2020, according to Climate Group Amber.