Chinese power shortage

China is facing severe power shortages. As a result, millions of homes and businesses there have been left without electricity. electricity shortages in china are not uncommon, but this year there have been power shortages due to several factors. Industrial areas in the northeast of china, in particular, have been severely affected. Winter is approaching there.  

Why is there a shortage of electricity in China? 

Severe power shortages are common in china during peak summer or winter power outages. But this year some factors have exacerbated the problem. The world is starting to run as usual again after the plague. In this situation, the demand for Chinese products has increased and the factories that make it require more electricity. china has set some rules that will eliminate carbon dioxide emissions in china by 2060.

Thus reducing coal production. However, the country relies on coal for half its electricity. Similarly, as the demand for electricity has increased, so has the price of coal. Reuters Chinese power shortages but coal-fired power plants are not ready to run at a loss as the government is tight on electricity tariffs. So many have drastically reduced production.

Who are the victims of this power shortage? 

Homes and businesses have been affected by the limited supply of electricity in many provinces. But there are power shortages in other parts of the country as well. Companies in areas where major manufacturing plants are located are told not to use too much energy when there is a high demand for electricity. The running days of these companies have also been reduced. industries such as steel production, aluminium smelting, cement production and pesticide production have been severely affected. 

How will this affect the Chinese economy? 

According to official data, China's factories are down this september after february 2020. It is noteworthy that the country's economy was badly affected by the corona freeze in february 2020. international investment banks have lowered the country's economic growth forecasts due to concerns over power shortages. Internationally this will greatly affect the supply chain. This is especially reflected in the high shopping season at christmas at the end of the year. 

What is china going to do to fix this? 

The National Development and Reform Commission, which plans on China's economy, has various plans to address the problem. It has plans to increase the production of coal companies, increase the supply of coal and provide electricity. The Chinese electricity Council, a council of manufacturing companies, has announced that coal-fired companies are expanding their purchasing volumes. The council said it would help meet fire hazards and electricity needs in the winter. Similarly finding new sources for coal imports is not an easy task. russia has already targeted its customers in Europe. Indonesian companies affected by heavy rains In mongolia there are not enough facilities to bring it by road. Are energy shortages in the world interrelated?