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China Energy coal-fired power plant. (Photo Credit - Reuters)
China Energy coal-fired power plant. (Photo Credit - Reuters)

Electricity crisis in China disrupts industrial supply chain

ANI | Updated: Oct 11, 2021 18:39 IST

Beijing [China], October 11 (ANI): The biggest manufacturing hub of the world, China is facing an electricity crisis that has hugely disrupted the industrial supply chain.
Taiwanese media has reported that electricity curtailment in many places in China has caused chaos in the industrial supply chain.
The most prominent example is Yiwu in Zhejiang, which is known as China's commodities center. It has taken a hit in the e-commerce sector (which is a huge part of China's economy) due to electricity curtailment, as per reliable sources.
Factories and warehouses are relying on diesel generators which are driving their expenses up, leading to dissatisfaction among the business owners.
Millions of people are affected by what is being considered one of the worst power crises in the country.
The Hong Kong Post reported that 20 of the total 31 provinces are implementing energy-rationing, putting the industry sector of the world's second-largest economy in a fix.
In a bid to ease a power crisis, China has ordered its coal mines to ramp up production.
Laura He, writing in CNN said that China is struggling to balance its need for electricity.
Power shortages have spread to 20 provinces in recent weeks, forcing the Chinese government to ration electricity during peak hours and forcing some factories to suspend production.
These disruptions resulted in a sharp drop in industrial output last month and weighed on the outlook for China's economy, said Laura He.
Authorities in Inner Mongolia, China's second-largest coal-producing province, have asked 72 mines to boost production by a total of 98.4 million metric tons, according to state-owned Securities Times and the China Securities Journal, citing a document from Inner Mongolia's Energy Administration. (ANI)