China in coal-plant construction binge

For companies and local officials eager to prop up growth with new jobs, the availability of low-cost financing is combining with coal prices that are half the level of five years ago to make power projects attractive. Tens of billions of dollars will be spent over the next two years, reports The Wall Street Journal. Investment in thermal power projects jumped 20% last year even as China’s power demand fell. Beijing has promised to reduce overcapacity in the coal sector and other industries sucking up investment that could be better spent elsewhere. It has set aside 100 billion yuan to resettle laid-off workers, some 1.8 million of them from the coal and steel sectors.