SamuelRSmith on 13 October 2014
China's imposing an import tax on coal which will hit Russia and Australia. This will be a large blow for both of their economies.
However, it's important to ask why they are imposing this tax: because the global price of coal is falling, and China's domestic industry cannot run at a profit at the global price level.
Falling coal prices are a terrible, terrible, sign. China is the world's largest coal consumer, and they primarily consume it for electricity generation. If prices are falling for coal, that likely means that demand is falling for coal, and thus, likely falling or lower-growth-than-expected demand for energy in China. Indicating China's real economy is in far worse shape than their Gov't or the IMF are reporting.
