Key Chinese industrial regions warn of a deepening energy crisis, as a result of which the government began saving electricity in September, which affected a number of factories. Beijing is trying to increase coal supplies from local mines to power plants, but it is not doing very well, also due to the current floods in the country.
Many industrial plants operate only a few days a week, some have even longer outages. Goldman Sachs estimates that the crisis affected 44 percent of industrial activity, lowering China’s economic growth outlook by one percentage point for the third quarter and two for the last quarter. “Reducing electricity supply in China will contribute to economic tensions, which will affect GDP growth in 2022,” guarded also Moody’s.
Representatives of the European Union’s Chamber of Commerce in China complained on Wednesday that planning for production restrictions was chaotic. According to them, factories with hundreds to thousands of employees receive instructions only an hour in advance. The chamber states that it brings together 1,700 members operating in many regions of China. She did not specify how many of them were affected by the outages.
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