Chinese growth under pressure from power cuts | Abroad

The shortages are partly the result of the scarcity of coal, which makes up about 60 percent of China’s energy mix. Coal supplies have been restricted by an embargo imposed by Beijing against importing country Australia over a dispute between them. In addition, in the fight against climate change, the regime has imposed emissions restrictions on industry.

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But due to the global economic recovery, many Chinese factories are running at full speed again, meaning that electricity demand in the first half of the year was higher than before the corona crisis. The combination of rising demand and falling supply is putting pressure on the energy supply.

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Millions of households and many factories are affected by the shortages. Many suppliers of large international companies also run into problems as a result. Taiwanese Unimicron Technology, a supplier to Apple, has already announced that all branches in two Chinese regions must stop production from Sunday to Thursday. A Tesla subcontractor is in the same situation.
Several international banks have already revised the growth outlook for China downwards. Goldman Sachs expects a growth of 7.8 percent for 2021 instead of 8.2.

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