China's heavy industry includes the energy, iron and steel, machinery and chemical industries. In 1999, the added value produced by heavy industry in state-owned enterprises and industrial enterprises above a certain scale amounted to 1,161.7 billion yuan. Among coal, petroleum and electric power, coal is the major energy source. Large coalfields include Datong in Shanxi, Kailuan in Hebei, Pingdingshan in Henan, Huaibei in Anhui, Yanzhou in Shandong, Xuzhou in Jiangsu, Jixi in Heilongjiang, and Tiefa in Liaoning¡ª16 in all. In recent years, along with the restructuring of the industrial system, the economic growth in coal enterprises has reflected their change to the intensive type; at the same time diversified operations have developed rapidly. Now, key coal mines in China have set up 17,000 diversified-operation enterprises, the output value of which exceeds half of the total coal output value.

Young technicians repairing a modern large loading vehicle in the Antaibao Coal Mine, Shanxi Provine.

The petroleum industry is distributed mainly in the Daqing Oilfield in Heilongjiang and Liaohe Oilfield in Liaoning, Shengli Oilfield in Shandong, Huabei Oilfield in Hebei and Dagang Oilfield in Tianjin. In recent years, three basins rich in oil deposits have been discovered in Tarim, Turpan-Hami, and Junggar basins. In addition to many large onshore oil and natural gas operations, a number of offshore operations are continuing in the Bohai Sea, and the east and west of the South China Sea.

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