15 Comments Add your own

• 1. Chris Carr  |  November 14th, 2007 at 11:16 pm

  Check out this October NY Times piece, China’s Green Energy Gap, which touches on some of the challenges China is facing in its efforts to wean itself off coal.

  This article also notes some of the challenges faced by firms in China who wish to become more environmentally friendly, yet, and as you can see, they may not have the requisite business knowledge you learn or take for granted as a Western trained MBA student, or if they do have said knowledge, they are not executing very well on it. E.g., in particular, some of the fundamentals you will learn in your operations course Spring quarter.

  My point: The challenges highlighted in this related NY Times article are complex and difficult. I am relieved I am not the poor government official in Beijing assigned to handle, own and fix it.

• 2. Angie Q. Dip  |  November 15th, 2007 at 10:51 pm

  Yet another article highlighting China’s negligence in regards to human lives. This does not necessarily mean China does not care about humans, but it shows how certain companies (and even government officials!) care more about making money than the lives of people. Could one reason be because they have such a huge population that it would not be a big deal if a ‘few’ lives were lost? Or is money really that important to these irresponsible businesspeople and government officials?

  Fortunately, we can see that the Chinese government is being more responsible, since “China has cracked down on unsafe practices in the past two years, bringing down the number of deaths by 20 percent from a peak of nearly 7,000 in 2002, even as coal production has increased.” The Chinese government and some companies are also trying to reduce the global warming problem by leaning towards other alternative energies, such as wind, biomass, hydroelectric, solar and nuclear. Not only does that reduce the pollution that coals cause, but it also means safer lives. Hopefully, this means the number of coal-mining plants would be reduced dramatically, and these alternative energy plants would replace them. People would no longer have to work in the dangerous coal-mining conditions.

  It amazes me that the workers are more afraid of unemployment than getting hurt or dying from this profession, but, I guess since there are so many other people in China fighting for a job, these workers feel they have no other option but to stick with coal mining, no matter how dangerous it may be. It is upsetting to read that to a miner, “an accident means a colleague has departed the world but it also means the mine will stop work.” It sounds like losing a colleague is not as devastating as losing a job.

  Instead of trying to improve working conditions, I agree with the government in blowing up the facilities at smaller mines that do not comply with safety standards. As a matter of fact, they should aim to get rid of a majority of the coal-mining plants, to reduce the global warming problem and to decrease the number of lives lost.

  The Chinese government should make sure all coal-mining plants have safety regulations, not just the larger ones. Inspectors should drop by the plants, unannounced, once in a while to make sure the companies are following the safety regulations. They should talk to workers and ask them if there have been any accidents that the mine owners did not report about, and make sure that their statements will be anonymous so the mine owners would not know who ‘snitched’ and threaten to fire them. The companies should also follow the U.S. law and require air packs for the miners, which would allow miners about an hour’s worth of oxygen in case of an emergency. In addition, increasing the use of other types of energy is also vital. Although these alternative energies would probably cost more than coal, it is definitely worth it to preserve the human lives.

• 3. Dena Malloy  |  November 17th, 2007 at 12:51 pm

  Mining in China is certainly not something I believe the rest of the world would want to emulate. They must have an Economist heading up these smaller companies because sure they are maximizing profit, but they certainly aren’t considering the cost of a human life to be very high. The way they seem to get away with this is because of the extreme poverty in rural China. It is sort of like an underground economy. I would like to compare it to Mexican workers that risk their lives crossing the US/Mexico border in the desert to get to San Diego or LA where they can earn significantly higher wages than at home to support their families. I can even compare it to US contractors working in Iraq providing security for journalists and ambassadors. These people are taking a very risky job in return for very high pay. This seems to be a running theme in my posts, but things we criticize China for; we seem to be participating in ourselves. I think we ALL need to improve. Taking another lesson from our Econ class, these people are being a paid a compensating wage differential to take on the risk. I don’t like it, but it seems to be the way the world works. We must somehow get the Chinese to value human life more highly. In the US, we seem to have done this at least partially by our litigious society. When someone gets hurt or injured at work, even if they knew the job was risky, they will sue the company. Maybe allowing personal injury lawsuits like we have here would make China a safer place to work.

• 4. Deanna Haskell  |  November 17th, 2007 at 11:04 pm

  after reading the article ,”China’s Green Energy Cap,” I would just like to say that it illustrates a very interesting comparison of various ways to prodcue electricity. For now coal is a necessary evil to power the economy in China. And as the article mentions there are devices that can be used to decrease the amount of coal necessary to produce the same amount of electricity- this may reduce the number of accidents that occur in mines because production goals may be decreased. However, it does not address the pollution issue. Scrubbers of various types may be put on the plants to help with this problem. The Chinese are facing similar problems that the U.S. is facing in terms of implementing alternative energy production systems. Renemwable energy is generally not cost effective, hence the CA gov giving tax breaks and subisidies to power renewable energy ventures. It is a long process, that no one has successfully tackled. It is admirable that China has tried to tackle these issues and clearly it is a complex problem with many factors affecting energy production.

• 5. Frank Wallace  |  November 18th, 2007 at 4:35 pm

  This coal mining issue definitely sounds like a problem when you look at the death toll per year and the status of the current situation, but it is a problem in which I don’t know if there is a feasible solution. Since the mining is necessary to China’s economy, they can’t just stop coal mining altogether. Factories need the coal, and farmers need the work and money. The solution to blow up the mines that aren’t in compliance may seem like a good idea, but it isn’t actually solving the problem. It only addresses the problem on an individual basis, and I bet that for every mine they blow up, somewhere else at least another one starts up. But is it possible for China’s government to enforce the standards on the smaller mines? I honestly think it is nearly impossible. Look at how vast the country of China is. It would be very difficult to regulate the entire country and to discover all of the smaller mines. This problem is not much different than the drug problem that we deal with in the United States. As hard as our government tries, it is virtually impossible to stop drug trafficking and dealing in our country because it runs so rampant and is so easily done. I wish I could offer up some amazing solution to fix the coal mining problem in China, but unfortunately, I think the only real solution is for their government to just do the best they can in trying to enforce and control the regulations. They should continue to improve the safety of the larger government owned facilities, but as far as the smaller ones, they can only do their best and hope for fewer accidents.

• 6. Chris Kirk  |  November 19th, 2007 at 1:26 pm

  This is an interesting situation to dicuss. There comes a point in every developing countries history that the country faces the issues that surround industrialization. Working conditions and labor rights and government regulations are usually developed to protect the worker. In this case, China has begun to impose some of these regulations at larger more powerful mines but have neglected to enforce the same rules at smaller mines. This at large becomes an ethical issue that the government needs to address. Regulations are only as good as the extent to which they are enforced. Therefore, China needs to do a better job of monitoring and protecting smaller mines. To play devils advocate to my own point however, it would be tougher to regulate smaller mines and then the government is faced with getting “more bang for the buck” and enforcing regulations a bigger mines with more workers. The real improvment may have to stem from the desires of the workers themselves. The issue may begin to follow the same pattern that led to the formation on unions in the United States. On the other hand it would be tough for a worker to put his job on the line. There is a cost benefit analysis going on at the level of the worker as well which goes something like…..am I going to risk the safety hazards that are associated with my job so that my family can eat this week?

• 7. Matt Sprecher  |  November 19th, 2007 at 5:30 pm

  Similar to other peoples posts, I feel that there is no easy solution to this industrial problem. Although the dangers of coal mining is evident, the need for it’s natural resources are far to important to potentially lose. Given the fact that China continues to rise as a world power you could make the argument that regulations could one day be applied to smaller factories, but there seems to be no quick fix to this situation. The current demolition of coal mines to counteract unsafe regulations does nothing but harm China’s industrial economy. In a country that is desperately in need of cheap and accessible energy, the destruction of one coal mine will seemly just lead to the construction of a new mine almost immediately. In order for the Chinese government to adjust and make the corrective action, the creation of a regulations committee may be the necessary action. Although the duties of that committee may be broad during their initial inception, over time it could create more focus towards a specific area of need. A fix for this problem may come with time, and with the loss of more lives, but as the Chinese government continues to progress so will their regulations and industrial safety rules.

• 8. David Zarcone  |  November 19th, 2007 at 6:03 pm

  In China, coal is the most feasible and profitable energy source. They are easy to make, easy to run, and produce a lot of energy. However, this does not take into account the harm that they do on the environment. Apparently, according to the article “China’s Green Energy Gap,” most other alternative energies face numerous obstacles that prevent companies from producing electricity for hundreds of millions in a timely manner. Many companies are doing the best that they can to produce green energy, but they are not at a point where the energy created can sustain their rapid growing country.
  This is a tragic reality since coal produces more global warming gases than any other major source of electricity. According to a case study, “China Coal and Pollution,” (http://www.american.edu/TED/chincoal.htm), coal accounts for about 70% of China’s total energy consumption. There is a major concern that China is damaging the environment and inadvertently creating health problems for Chinese people, and people in surrounding countries such as Japan, Taiwan, and North and South Korea. Rapid measures need to be taken to create acceptable alternative methods of energy that create the same yield while reducing the harmful consequences.
  I happened to stumble upon a paper written by a Debra J. Lew entitled “Alternatives to coal and candles: wind power in China,” in which she examines China’s ability to exploit its vast amount of wind to satisfy the energy demand as well as provide energy to rural areas without electricity. This can be done through hybrid systems and the combination of wind turbines and storage systems.

• 9. Kyle Tripp  |  November 20th, 2007 at 11:58 am

  Well it is no surprise in the dangers involved to incur the most profit possible. In order to create safe working environment along with protecting the environment sacrifices must be made. By sacrifice I do not mean peoples lives. When has the decision been made that a person’s life is expendable for profit. There is no doubt in my mind that coal is the cheapest way to go when in comes to producing electricity. You can’t have your cake and eat it too. If other mean of electricity are used then not only will this be good for the environment, it will save lives. The pursuit of money has blinded people of the value of life. I would rather be poor and living then rich and dead. I feel that China should start protect the environment and their workers. Only good can come from saving lives. I know that is an odd concept, but what is money if there is nowhere to spend it. China will be successful at what ever the country decides to do. They should show their people that they care about their well being and safety. The people will respond and the response will continue to keep china growing.

• 10. Jesse Bilsten  |  November 21st, 2007 at 2:35 pm

  I went to China back in 2001 and the air quality was fine. Smoggy, but no worse than L.A. I’ve heard now that you can’t see across the street in Shanghai. In a matter of 6 years the pollution has gotten that bad? Incredible!

  The coal mining accidents and negligence towards their citizens’ lives is scary. It makes me wonder when the tipping point will be reached. Another 5 years? When you can’t see at all in the big cities? When people start dying from walking around the streets instead of in the mines? When does a communist government start to finally respond to the atrocities created by it’s fast growth?

  I’m very interested to see how far along China has come since I last visited the country… as it sounds like it will be the difference between clean air and black smog.

• 11. Matt Fencl  |  November 22nd, 2007 at 2:49 pm

  When I read this post, I was instantly reminded of the coal mine that collapsed in Utah earlier this year. The country lamented the loss of six trapped coal miners. You couldn’t turn on the news without being updated on the progress of the rescue effort. I’m in no way trying to trivialize the disaster: these were hard working Americans with families and their loss is regrettable. But this horrible fate awaits 4746 Chinese coal miners per year. Many of these Chinese coal miners had families of their own also. Do you think their deaths created a media frenzy of similar magnitude? Of course not. As sad as it may sound, coal mining casualties in China are old news, or worse, no news.

  My great-grandfather was a coal miner. He immigrated from Europe looking for a new life in the “land of opportunity” and found himself tunneling underground with a light on his head for 12 hours a day. His son, my grandfather, remembers that his father’s pay for such terrible work could only put bread and water on the table for supper. My great-grandfather died of the black lung in his forties. Why did my great-grandfather kill himself mining coal? For the same reason the Chinese do: Survival.

• 12. Steve Munio  |  November 23rd, 2007 at 8:14 pm

  Unfortunately Chinese coal miners are not the only victims of China’s thirst for energy.
  I’m sure (hopefully) by now many know of the situation in the Darfur region of Sudan. The Janjaweed militia under the Khartoum government are basically conducting genocide against any non-arab people. This is a problem largely ignored by the world, after many nations pledged never to turn a blind eye to this sort of thing after Rwanda. The USA has actually attempted to initiate some relief and send UN forces in to control the violence. All attempts have FAILED due to China vetos. China is one of the five permanent members of the UN security council and they have used their power to block arms embargo’s (on arms that go directly to this militia), and they have made it so the Sudanese government must authorize any UN troops to enter…which they will not. This is due to the fact that they have many oil companies in the Sudan and import the majority of their oil from there. Interference with that oil flow is not welcomed. Nevermind the fact that mens eyes are gouged out, infant boys penis’s are cut off for them to bleed to death, women and children are raped so brutally that they require months of hospitalization… and that is if they are spared from being hacked apart with machetes. The USA pretends to care, but with Darfur offering no strategic advantage to them, they don’t press the issue because they value their good relationship with China more than these peoples lives in Sudan. Just another little tidbit about China contributing to my disgust for this selfish nation.

• 13. Nic Marlin  |  November 27th, 2007 at 7:50 am

  The coal mining issue in China is a serious issue that needs to be resolved. Clearly the staggering amount of mining related deaths has the Chinese government looking at the problem, but what can be done to solve it besides blowing up the mines? Alleviating this issue involves finding a way to motivate the small mine owners to follow the safety regulations that seem to be working for the larger mines. The government has already tried the scare tactics of punishing those mines that do not comply with safety regulations, and this is not working. Instead of complying, the mines owners are finding ways to bribe officials and not report injuries or deaths. The mine owners obviously are concerned with profits above all else (including human life), so the Chinese government needs to incentivize mine safety by rewarding small mine owners monetarily for compliance with safety regulations and low injury rates.

  Implementation of this plan would not be easy. Strict inspection of the mines by an honest government official would be necessary. The amount rewarded would have to be greater than the benefit the mines are receiving by not complying with safety regulations in order for the plan to work. The government’s contributions would probably be significant, so they would have to be in various forms including tax cuts, subsidies, etc.

  The best way to solve this issue would be to incentivize the mine owners to comply with safety regulations. Perhaps punishing bad behavior and awarding good behavior may be enough of a motivation to have the small mine owners comply. This is a rational solution taking economic principles into consideration.

• 14. Richard Ciesco  |  November 27th, 2007 at 9:22 pm

  Again this is a sticky matter (now a days what isn’t). But you would think that blowing up the small mines would not be in the best interest of the government? Maybe there are government officials who loose money by allowing the smaller mines to stay open because then the government regulated/run mines can charge a premium without them smaller mines running.

  I think the best thing to do is have government officials work with the small mines to show / educate them on how to run a safe mine. That way the government can begin to regulate these mines easily because there will be a strong connection between the mine and the government in place. Knowing that only more coal will be needed in the future, because of the growing need of electricity and the low cost of producing it from coal. This would make China to be an even bigger player in the coal industry and ensure the much-needed fuel for their factories because more coal would be coming from their own land. This would enable them to control where the flow of coal mined in China goes and lessen their need to maybe buy coal from other countries.

• 15. David Dougherty  |  December 6th, 2007 at 10:04 am

  If the Chinese government truly cares about its people, then they need to find a way to connect with the leaders of this industry. It appears to me that the Chinese are in such a hurry to expand and grow economically, that they neglecting proper measures in revolving on how to do it. If growth comes at the cost of innocent human life, then is it really beneficial? I’m sure these people who work the mines would quit or find other work if they could, but just have no other options. No person in their right might would want to risk their life everyday to put food on the table for their family if they didn’t have to. The government needs to crack down on all mines in the coal industry, not just the large ones. If I was a crafty Chinese businessman that owned a large mine, then I certainly have the resources to find way around regulations. I would just staff people at some of the smaller mines, and really exploit the fact that the inspections are not intact at these locations. I think the big picture here surrounds the idea of alternate energy sources. This is not merely limited to China, but is more of a global issue. We as members of the human race need to work collaboratively to have a solution for when these fossil fuels are going to diminish. Personally, I think it’s already developed, just not yet released as the oil companies would love to exhaust all of their resources available and maximize their profits before transitioning to the next wave of energy sources.

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