meanwhile...chances of chinese credit crunch?, page-6

one irony is that this liquidity crisis is partly occurring in coal mining areas, because of a halving of coking coal prices having an effect on establishments that had geared up for a coal mining future at much higher coal prices (sounds familiar doesn't it?)...so we see here China as a miner of commodities being damaged by events in china the user of commodities

china is going to have find a middle road here; to avoid all those negative effects that Thorburn describes it will need to act early to prevent a runaway effect, but on the flipside, it doesn't want to be seen to be encouraging more profligate behaviour