China's robust demand for all types of energy is breaking all records as the economy continues to expand. The push to meet this ever-growing demand is continuing to tax the country's infrastructure. Cotton shipments from Xinjiang have been suspended in order to accelerate the movement of coal east to the power plants of South China, where the worst electricity shortage in over five years is being reported. Approximately 6 percent or more of its electricity power-generating capacity is not operating due to a shortage of coal. Total electricity-generating capacity in the south has reached 164 GW of capacity, with 78 percent of that capacity running on coal. In addition to the coal shortage, a deficiency in fuel oil, which is burned by some power plants, has also been reported. China's power demand in the south is growing at near 15 percent per year.

For the first time in January 2007, China became a net importer of coal and has also sharply increased its imports of diesel and other fuels. December imports of diesel soared to the highest level in five years to 820,000 tons, while total 2007 diesel imports increased nearly 130 percent to 1.62 million tons. Gasoline imports were up 273 percent in 2007.