The next problem for the Chinese economy after Evergrande
The electricity crisis in China will have a severe impact on the economy towards the end of the third quarter and as the fourth quarter approaches, as the soaring prices of coal and gas as well as the strict emission targets from Beijing cause an electric supply shock.
The Global Times now reports that:
Several semiconductor vendors for Tesla, Apple and Intel, including ESON, Unimicron and ASE Groups, which have manufacturing plants on the Chinese mainland, recently announced that they would suspend the operations of their factories to follow the policies local use of electricity. “
In part, the energy crisis facing China is brought on by its own actions as the government severely clamps down on energy use, with Xi Jinping aiming for a “blue sky” ahead of the February Winter Olympics – which are due take place in Beijing.
This is the latest edition of the global energy crisis and puts additional pressure on the Chinese economy as it risks a severe shortage of coal and gas – which could lead to rations between factories / companies and hit hard hit consumers amid higher prices.
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