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China’s August coal output drops 3.2% on safety checks

by Warren S.
October 2, 2025
in Upstream
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China has reported a less-than-ideal outlook in the coal sector for the month of August. The second biggest economy in the world has reported that the coal sector has suffered as a result of several factors that have contributed to a significant decline in the coal sector overall. The alternative energy solutions that are ever-present in the country, along with the government’s stance on oversupply, have resulted in a continuous decline in the coal sector over the past two months. Can the most industrious nation in the world complete its transition to the renewable energy sector?

The National Bureau of Statistics has reported that the decline in the coal sector has continued from July

Yes, the numbers are a cause for concern, but the August output for the coal sector is slightly better than last month. China’s raw coal production in August fell 3.2% on year to 390.5 million tonnes, but the output is better than last month, which was a result of several factors in China’s coal sector.

Following reports of significant oversupply in the coal sector, the Chinese government announced that it would be conducting inspections at a range of coal sites across the nation. China is committed to delivering a robust energy capacity portfolio that goes beyond the coal sector.

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China is one of the most industrious nations on the planet, and as such has developed a vast array of energy generation options for the government to consider.

President Xi Jinping delivers China’s plans for the sector at the 80th United Nations assembly

The 80th assembly of the United Nations was recently held in New York. The event saw a raft of issues being discussed by the world’s leaders. President Xi opted to make an address via video. In his address, the president laid out his nation’s plans for the energy sector, among many other goals.

“China will, by 2035, reduce economy-wide net greenhouse gas emissions by 7% to 10% from peak levels, striving to do better; increase the share of non-fossil fuels in total energy consumption to over 30%; expand the installed capacity of wind and solar power to over six times the 2020 levels, striving to bring the total to 3,600 gigawatts; scale up the total forest stock volume to over 24 billion cubic meters; make new energy vehicles the mainstream in the sales of new vehicles; expand the National Carbon Emissions Trading Market to cover major high-emission sectors; and basically establish a climate adaptive society.” – China’s President, Xi Jingping

The coal sector will get back to full strength, according to industry insiders

The reports that state the current state of affairs in China are a worrying sign of the current climate over the past few months. Hydropower and solar generation were not able to pick up the slack that the decline of the coal sector produced. However, industry insiders have pointed out that the coal sector will recover as the government inspections have come to an end.

Couple that with the end of the rainy season in China, and the coal sector will continue to play a crucial role in the energy sector. Like it or not, coal will be a part of the future, in one way or another.

China will be hoping to reduce its reliance on the coal sector

China has committed to revolutionizing the energy sector, which aligns with the commitments made to the global community. A growing consensus has pointed out that China needs to reduce output in order to stabilize prices. Unlike the United States, which has pioneered a shift in the energy sector under Donald Trump, China is committed to reducing its reliance on coal, as the country is one of the worst polluters on the planet. Whether they can achieve that goal remains to be seen.

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