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China's energy shortage problems are getting worse

China's energy shortage problems are getting worse. The energy crisis has already led to the cessation of production in many factories.

China's energy shortage problems are getting worse
Yazar: Tom Roberts

Yayınlanma: 28 Eylül 2021 05:16

Güncellenme: 6 Kasım 2024 12:31

China's energy shortage problems are getting worse

China's energy shortage problems are getting worse. The energy crisis has already led to the cessation of production in many factories, including companies that are suppliers to Apple and Tesla. This will take its toll on the economy. Therefore, several analysts have revised their downward estimate of growth. Consumers around the world are facing a possible shortage of smartphones and other goods before Christmas, economists warn. Electricity has been introduced in many parts of China. Apple phone component supplier said it had suspended production at a factory west of Shanghai on orders from local authorities. The disruption of production in China's huge manufacturing sector during one of the busiest seasons reflects the Communist Party's struggle to balance economic growth in an effort to reduce pollution and greenhouse gas emissions. "Beijing's unprecedented commitment to enforcing energy consumption limits could bring long-term benefits, but the short-term economic costs are significant," Nomura analysts said in a report Monday. At the same time, they lowered China's economic growth forecast to 4.7% in the third quarter from 5.1% and for the full year to 7.7% from 8.2%. Manufacturers around the world are already struggling with chip shortages, problems with international shipping and other persistent effects of global traffic and trade closures during the new coronavirus pandemic. China's energy crisis is the result of a shortage of coal and a tightening of emission standards. Electricity problems have affected generation in a wide range of industries and in several regions. Households are also beginning to feel the consequences as night temperatures in the northernmost cities fall to freezing. The National Energy Authority (NEA) has therefore ordered coal and gas companies to provide sufficient energy supplies to keep heat in homes in the winter.
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