Study On Market Performance Of China’s Coal Industry

China, which is the biggest market for coal in the world, has always been taking coal as an important long-term strategy resource. Thereby, coal plays an unshakable fundamental role in China’s national economy. China has begun market-opening exploration in coal industry since1985, which contributes to the dramatic increase of coal production and significant profitability of China coal industry. Currently, there have been a group of outstanding coal enterprise groups in China coal industry, such as Yanzhou Mining Group and Shenhua Group. However, there are still many problems in China coal industry, such as disorder of competition market, uncompetitive price and high incidence of mine accidents. Therefore, it has a very important practical significance to conduct an in-depth study on the development of China coal industry.Based on industrial organization theory and price mechanism theory, this paper aims to make a comprehensive evaluation for market performance of China coal industry and explain its causes from perspectives of market structure and market behavior. By statistical measures and comparative analysis, this paper draws numbers of useful conclusions concerning China coal industry:resource utilization rate and technology innovation level is not high; resource allocation is inefficient; there is too much harm to environment; the price mechanism is not perfect; barriers to entry are not enough, etc. To solve the problems of China coal industry, this paper finally gives some recommendations about how to optimize market structure and weaken the social negative externalities for enhancing market performance of China coal industry.