Chinese and foreign coal competition in the modern Shanghai market

Coal products from foreign countries, such as Japan, and from foreign-funded mines, such as Fushun and Kailuan, had long dominated the modern Shanghai coal market due to their advantages in the chains of production, transportation, and sales. Chinese-funded coal mines, however, were mostly located in the hinterland of China, and due to high production costs and transportation fees, they found it difficult to enter the coastal market of China, which had a strong demand for coal products. After the September 18th Incident of 1931, coal products imported from Japan or produced in Fushun were boycotted by Chinese people, resulting in coal shortages throughout the Yangtze River region. In 1932, the dumping of Japanese coal and Fushun coal led to a significant drop in the overall coal market prices. This series of turbulence posed an unprecedented crisis for Chinese-funded coal. In response, the Chinese government initiated relevant policies aimed at providing relief of the Chinese coal, such as reducing freight rates and increasing tariffs. As a result, the Chinese-funded coal industry acquired an opportunity for recovery and growth.