Electricity Cuts Affect The Chinese Manufacturing Companies

China’s top state-owned energy companies have been ordered to ensure there are adequate fuel supplies for the approaching winter at all costs, a report said Friday (Oct 1), as the country battles a power crisis that threatens to hit growth in the world’s number two economy.

The country has been hit by widespread power cuts that have closed or partially closed factories, hitting production and global supply chains.

The crisis has been caused by a confluence of factors including rising overseas demand as economies reopen, record coal prices, state electricity price controls and tough emissions targets.

More than a dozen provinces and regions have been forced to impose curbs on energy usage in recent months.

Perhaps you have noticed that the recent “dual control of energy consumption” policy of the Chinese government has had a certain impact on the production capacity of some manufacturing companies, and the delivery of orders in some industries has to be delayed.

In addition, the China Ministry of Ecology and Environment has issued the draft of “2021-2022 Autumn and Winter Action Plan for Air Pollution Management” in September. This autumn and winter (from October 1, 2021 to March 31, 2022), the production capacity in some industries may be further restricted.

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Post time: Oct-12-2021