CHINA may reduce the amount of coal it allows to be exported in the second half of the year to ensure adequate domestic supplies as state price controls discourage imports.

"I believe the government will move to cut the second half quota because of concerns about a potential domestic shortage," Fang Anxiu, a director of information at the state-owned China Coal Transport and Distribution Association, said in an interview in Beijing. Curbs on domestic selling prices announced last month may deter overseas suppliers from selling the fuel to China, he said.