China’s Energy Crisis and Indonesia’s Coal Export


China, one of the huge economies, the largest in terms of numbers, biggest in exports is now in a state which was never anticipated by them.

A hit by the energy crisis, lacking in the energy making resource china now facing the huge coal crisis and to cover that they are importing the coal for Indonesia at a major value. And Indonesia enjoying this export of coal.

One of the most impactful economies in the world, one of the huge producers and exporters of goods at cheap prices, is currently undergoing a huge crisis of energy this time. Out of total energy produced in China, a huge 70% of it is produced with the help of coal.

Considering the need of the country link china 70% is a huge number than what it just looks. But why these all things have happened? Why there is a sudden requirement for coal in china? Why they are focused on importing the coal from china and not from somewhere else? Well, the answers are here, but we need to look at it right from the beginning when it all started.

It all started when the Chinese government was said to be angry with Australia for the demand for an investigation of Covid-19. The tension between these two massive coal traders was increasing. Then afterward China imposed a de facto ban on Australia’s coal import. This was a big decision considering both needed each other to survive in this coal trade.

This decision was taken, but the supplies were not arranged properly to meet the needs of coal. After this ban, China decided to make the purchases from Indonesia which was again a big producer of coal.

Post pandemic china was heavily dependent on their production of construction and heavy industry to revive their economy. These huge plants needed more energy to produce more goods. While generation and supply of energy were in hands of the Central government, they kept their focus on the economy. And the crisis arrived.

After the crisis in China, Indonesia was probably the happiest country because all the import which was used to take place from Australia was now shifted to Indonesia and there was a sudden and huge demand for coal from China.

Export of Indonesia boosted considerably and in the speculation of that, the market started showing upward growth. This need for china has been visible post the ban on Australia. China steadily started buying coal from South Asia and Europe to fulfill their requirement. Indonesia is benefited the most due to all this happening.

After all this crisis and lack of energy, china has not revoked the ban from Australia, and instead, they have started looking for new and other resources for energy, which clearly states the intention of china in the coming future.

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