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"In the first half of this year, raw coal output of national large-scale coal enterprises reached 1.7 billion tons, a year-on-year increase of 3.9%; net coal imports stood at 144 million tons, up 12.6% year-on-year; preliminary estimates show that national coal consumption was about 1.89 billion tons, a year-on-year growth of 3.1%, achieving a basic balance between supply and demand." Recently, Wang Xianzheng, President of the China National Coal Association, made this statement in his keynote speech at the opening ceremony of the 2018 Summer National Coal Trading Fair. He noted that from the perspective of production capacity scale, the overcapacity situation in the coal industry has not changed.

In 2017, all three major state-owned coal enterprises in Henan Province turned losses into profits. The photo shows the production line of Pingmei Longji New Energy Technology Co., Ltd. in Xiangcheng County, Henan Province, taken on October 26, 2017.

Following its first increase in coal production in nearly four years in 2017, raw coal output is expected to continue growing this year as advanced production capacity is gradually released. On April 11, the China Electric Power Planning and Engineering Institute (CEPPEI) released the "China Energy Development Report 2017" (hereinafter referred to as "The Report") in Beijing. In 2017, coal demand recovered, and raw coal production saw a restorative growth, with annual raw coal output reaching 3.52 billion tons, a year-on-year increase of 3.3%. This marked the first positive growth since 2014. National coal-fired power generation increased by approximately 4.8% year-on-year, and coal consumption in the power industry grew by about 4.1% year-on-year.

In recent years, China's clean energy sector has continued to expand, and the development of a clean, low-carbon, safe, and efficient energy system has been accelerated. Since the 18th National Congress of the Communist Party of China, the proportion of coal consumption in China has decreased by 8.1 percentage points, while the proportion of clean energy consumption has increased by 6.3 percentage points. The first meeting of the Central Financial and Economic Commission held recently pointed out that it is necessary to adjust the energy structure, reduce coal consumption, and increase the use of clean energy.

In recent years, China's clean energy sector has continued to expand, and the construction of a clean, low-carbon, safe, and efficient energy system is accelerating. Since the 18th National Congress of the Communist Party of China, the proportion of coal consumption in China has dropped by 8.1 percentage points, while the proportion of clean energy consumption has increased by 6.3 percentage points. The first meeting of the Central Financial and Economic Commission held recently pointed out that it is necessary to adjust the energy structure, reduce coal consumption, and increase the use of clean energy.

After repeated deliberations and extensive argumentation, the "13th Five-Year Plan for Coal Deep Processing Industry Demonstration" and the "Layout Plan for Innovative Development of Modern Coal Chemical Industry" were released in early 2017. However, facing persistently low international oil prices and significant economic pressure on the modern coal chemical industry's development, there has always been discussion and debate domestically regarding how the modern coal chemical industry should develop in the future and in which direction it should proceed.