An Obscure Chinese Mining Law Is Hobbling Global Energy Security
- Miners facing tougher legal liabilities after March amendment
- Safety checks, corruption crackdown also discouraging output
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China’s current energy crisis can be traced back in part to a legal amendment targeting miners that garnered little notice when it went into effect in March.
Article 134 in China’s criminal law elevated penalties for a series of violations from fines to possible jail time in response to an increase in mining-related accidents. However, that law led to a newfound hesitancy among miners to boost production and intensified a supply deficit that could not come at a worse time for President Xi Jinping as the country faces a severe power crunch amid a surge in energy demand. The crisis also threatens to slow economic growth and snarl global supply chains.