“One thing China is looking at is tremendously expanding the coal-to-liquid (CTL) production process using the Fischer-Tropsch process (or its modern equivalent). China has large reserves of coal and a large-scale CTL operation could mean China will be lot less dependent on having to import oil from the Middle East.”
Yep, China does indeed have large coal reserves. Sadly, over half of their coal mines are on fire. Many have been burning for years even decades with no hope of being out burning further and further into the reserves.