The government of
Shandong, one of China’s major coal-producing
provinces, have ordered coal producers to cut prices by 10% for the next three months.
This is the main reason I have been reluctant to invest in Chinese natural resource companies. While I am still very
bullish on natural resource companies, I think you’re better off investing in non-Chinese companies.
Gasoline, by the way, is only $2.60 a gallon in China
because of price controls.
