The plan reduces the number of coal companies from 500 000 to 4000 and merges 520 of these key coal enterprises into seven major groups. The plan is due to be completed by 2005.
The seven large groups are destined to be listed on international or domestic markets. These seven groups will be regionally organized. China expects international competition to become more intense within the country after it joins the World Trade Organization.
Most of the country’s 500 000 coal enterprises are small, indebted mines using old technology and causing serious pollution. Technologically the industry is around 20-30 years behind other parts of the world while its management expertise is 50 years behind that of multinationals according to Liu Jisheng, an academic at Tsinghua University.
