North Korean companies smuggle coal to China amid growing electricity crisis: Report

Amid China's chronic power crisis, North Korean companies are breaking UN nuclear sanctions by allegedly smuggling coal to Beijing. According to Radio Free Asia, China's coal shortfall is the result of lower imports and lower local output as Beijing strives to balance rising energy demand with a goal to minimise pollution and carbon emissions. The smuggling companies are controlled by powerful government organisations, reported Radio Free Asia cited a trade official from North Pyongan province in North Korea.

The news smuggling comes as the United Nations banned coal exports in 2017. Meanwhile, according to media reports, China is experiencing an electricity crisis, which is pushing factories to curtail operations and power use, as well as resulting in outright blackouts in several areas. Meanwhile, the Foreign Policy magazine reported that the immediate cause is China's continued reliance on coal, which accounts for 70% of the country's power generation. The reasons for the crisis may also be traced back to a series of policy mistakes and poorly thought-out market interventions following the beginning of the pandemic, according to the Foreign Policy report. 

Several provinces in China experiencing blackouts

Meanwhile, the Chinese government has ordered the country's coal mines to increase production to alleviate the country's power crisis, which has left millions of homes without power. Several provinces in China have been experiencing blackouts since the middle of last month, according to CNN. Due to the power shortages, demand for electricity has increased, forcing the Chinese government to limit electricity during peak hours. The report stated that Chinese officials have requested 72 mines to increase production by 98.4 million metric tonnes in inner Mongolia, which is the country's second-largest coal-producing region. According to official government data, the planned increase in production would account for over 3% of China's total annual thermal coal consumption. 

Last week, the National Development and Reform Commission, China's state planner, even called on mining and electricity corporations to sign new agreements to fix the problem. Inner Mongolia, Shanxi, and Shaanxi, China's three largest coal-producing provinces, have also been ordered to deliver 145 million metric tonnes of coal in the fourth quarter to ensure that "livelihood use of coal" is not disrupted. It's worth noting that, as part of a nationwide effort to decrease carbon emissions, China shut down hundreds of coal mines earlier this year or cut production in those that were still operational. 

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