Business Articles - A Piece Of Coal In China's Economic Standard Test

by AQAQ WANG - Date: 2010-08-16 - Word Count: 890 Share This!

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Recently, an inconspicuous little message, "Attitude Development and Reform Commission swing, encourage small coal mines resume production," and is widely circulated in the media, marked the coal around the contest between the Government and the capital of the new changes in the pattern.

Of private capital into the upstream industry disputes, moving in opposition a long time. A few months ago, coal-producing province of Shanxi, Zhejiang, represented by small coal mines boss just left. As a regular army of the state-owned coal mines completely replace the dead, and made a fortune for mine to city water and soil after the car buy a house as a large number of small coal mines boss. Since then, in one fell swoop, would have the relevant departments can be assured of office, no more by the media blamed for not as at risk. How can all of a sudden the attitude to swing, but bow to a small coal mines do?

In fact, since the accumulation of several years, including coal mines, including private Energy Investment, the incremental capital to invest in Chinese society as a weathervane. China's natural endowment as determined in the middle and lower reaches of the manufacturing development of the full, accumulated a large amount of energy demand, and even have led the global energy prices. So the energy business opportunities smelling private capital, of course, investment in energy impulses. Including the oil field in the northwest of Yan'an, Shanxi's coal mines, they are all downstream demand-driven investments. But when a large number of people travel

information into the Coal Industry, the small, scattered, chaotic moment is bound to be among the features. Big Wave under the Qi to the sediment. Coal mining in the phenomenon of the various evil have come?? Long as the market economy, there is this ugly phenomenon. This is not because the other, precisely because the path of domestic reform is gradual, there are resource properties of the coal reform was on the last, and only to the price of energy when the signal has been deformed, the lure of high profits to be private until at price for a try. Short-term mentality

miners decided on a short-term behavioral patterns. Do not care about security, do not pay attention to the social image not because of any other, but because they do not know tomorrow can not adopt this piece of coal. This is hidden behind a problem, even if paid a resource fee, even if put on a variety of protective clothing, but the law on underground resources belong to all citizens, then what you paid it to get money to mining Who agree? He is the owner of it?

It is, therefore, management of small coal mines will be welcomed. Governance, and to state-owned mining enterprises, legal and moral hazard, there is no. In this process, all round are planning better.

Only no one can see the economic laws crying.
From small to large, global business development of any industry rules. The reason why a large state-owned enterprises, because the country has invested, and after several years of development. A number of industries including coal facts have proved that the national investment in state-owned enterprises can be conceived very perfect, the only flaw is that in practice it is inefficient. The reason why owners of small coal mines is small, because the capital is still in the cautious attempts of. Only in those bits and pieces of flame was Qiamie, people can see, the original coal less.

Is precisely because of this, owners of small coal mines were forced to leave after a few months, due to the winter, appeared to find the land of China coal heat. Accumulated years of fraternizing with the customers of small coal mines owner disappeared after the coal enterprises Zhemang. Concentrated in the manufacturing sector in Zhejiang Province, a matter of course, the media have begun reporting of winter in the north corporate procurement department bustling "advanced models." This report is certainly ridiculous, but manufacturers of coal while the hard facts, has given a simple moral to judge things good or bad people ado lesson.

The plight of the private economy is, With it, people angry at its ugly face. But there is little opportunity for us to see without its problems. Only in the Spring Festival, people will feel, the original of those usually regarded as College Students Donate Sperm snack shop, a small barber shop is very important. In five years, people will find these areas had been ignored, it can be made very enjoyable chains, forming a large capital "haircut industry group." However, if this factor is not the time, private capital is not profitable or not profitable leads more competitors to enter this industry of innovation, it never occurred. In the meantime, the passage of time people often forget, in fact, can be seen as the outcome of these economies, in fact, originally come out from the dirt road, the brutal competition in the fight against the enemies out.

So we have to thank this cold winter, is that it provides a similar standard experimental test of the coal economy.

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