Economic growth in the northern Chinese city of Taiyuan, Shanxi province, has crashed to zero from 12 percent in one year. Yan Xiaofeng’s coal-equipment business has gone down with it.
Yan, 38, said last week that he’s recorded 1 million yuan ($160,000) in sales so far this year from supplying gear and parts to coal mines, down from more than 10 million yuan a year in the boom times of 2009. “The economy in Shanxi is very simple: It’s all about coal,” said Yan, who’s been in business in the region for 15 years. “When the coal industry is in decline, every other business follows.”
