Shanxi has been an important area in China's coal industry for the past few decades. However, it is now suffering from the harmful effects of the coal industry, especially the large sinkholes caused by coal mining. The scale and severity of these damages are unprecedented. The researchers at ANBOUND have constantly been emphasizing that Shanxi has been providing the country with cheap coal resources on a long-term basis and has been bearing the resulting environmental and ecological costs for the country. The country should provide the province with special environmental compensation funding and tax concessions. The country can also establish a regional free-trade zone in Shanxi (along with the northeast region) to attract investors. Providing Shanxi with special rehabilitation policies will support the province effectively.