China Launches Inspections to Halt Excessive Coal Production

The Chinese government warned it may shutter coal mines guilty of producing above permitted levels, in the latest sign that regulators are getting serious about reining in overcapacity across industries.

The National Energy Administration is carrying out monthlong inspections in eight provinces and regions, including the biggest coal hubs of Shanxi, Inner Mongolia, Shaanxi, and Xinjiang, as part of a crackdown on overmining that it says has distorted the market. That’s according to a document from the agency dated July 10, which first began circulating on Chinese social media on Tuesday morning, and which people familiar with the matter later confirmed as authentic to Bloomberg News. The people declined to be named discussing a sensitive matter.