This paper presents the current status of coal production in China, especially focusing on dominant share of small coal mines. Through comparison with evolution of Japan's coal industry, those factors can be pointed out for growth of small coal mines in China, such as 1) better condition of mining resource, 2) small and dispersed market structure, 3) low level of labor cost and lack of capital. Lastly, recent policies for China's small coal mines is considered and evaluated.
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