China has recently been struggling with a major shortage of electricity

China has recently been struggling with a major shortage of electricity. The Chinese energy crisis can have a significant negative effect on the country's economic performance. Companies in the southern part of the Chinese state even have electricity to allocate. The CNN portal informed about it. The Chinese statistical office said on Wednesday that the local energy crisis had contributed to a slowdown in production in June. However, electricity shortages are also a problem for global supply chains, and Chinese authorities warn that energy allocations may last until the end of this year. "China is currently at a crossroads. On the one hand, it needs and wants to increase electricity production, but on the other hand, it also thinks about the set goals in the field of decarbonisation. However, the electricity allocations will clearly damage the Chinese economy and it seems that in the future these allocations will be repeated, "analyst Yan Qin told CNN. Virtually all sectors of the Chinese economy could pay for electricity rations. It should also cover the Chinese industry, which has long been one of the biggest drivers of the Chinese economy. According to the local national statistical office, the manufacturing sector, together with the construction industry, consumes up to 70 percent of the electricity produced. Chengde New Material, one of the largest stainless steel producers in China, plans to close its production up to two days a week until these allocations are canceled. As a result, the company expects a decrease in production volume of up to 20%, which is about 10,000 tons of steel in one month. The last similar energy crisis was experienced by China in 2011. At that time, rising coal prices forced 17 provinces to declare restrictions on electricity consumption. Analyst Lauri Myllyvirta believes that the Chinese economic recovery plan after the covid-19 pandemic is very carbon intensive. During the first five months of this year, energy consumption in southern China even exceeded pre-pandemic consumption levels by about 21 percent compared to the same period in 2019. At a time when many people are using air conditioners or other refrigerating appliances in their homes and offices due to high temperatures, the demand for electricity in China is rising sharply. However, some renewable energy sources, such as water, pay extra for high temperatures and fail to produce enough electricity. One of the few options is coal, which still accounts for about sixty percent of China's electricity generation. However, this does not correspond to the long-term plans of the Chinese president, who wants this Asian power to be climate neutral in 2060.