Surging Energy Prices Could Derail China's Coal Policies

The rally in energy commodities following Russia's invasion of Ukraine could derail Chinese plans for using the guiding of the price of coal, which is still a major source of power generation in the country. The recent policy of Chinese authorities to establish a more direct correlation between coal prices and electricity rates could be upset by the jump in energy commodity prices, including coal prices.

This, in turn, could slow China's economic growth, Bloomberg reported on Friday. On Thursday, Australian thermal coal, a benchmark for the fuel…