Power shortage in China hits foreign companies, production of multinational companies comes to a halt

Beijing: – Many provinces in China are facing power shortages that have hit foreign companies along with millions of homes. This is due to the Chinese government’s crackdown on coal companies, rising fuel prices and increasing demand for electricity. The power shortage has affected the production of companies like Apple and Tesla in China, and it is claimed that if the shortage continues, it could adversely hit the economy.

In the run-up to next year’s Winter Olympics, China’s ruling communist regime has taken steps to reduce pollution. As part of this initiative, China has instructed coal-mining companies and coal-fired power plants to reduce production. As a result, the supply of coal has dwindled, and its prices have skyrocketed. Demand for many products has been rising in on the international level, indicating the end of the Coronavirus pandemic. Factories in China are using more electricity to increase production to meet this demand.

Many provinces in China are facing power shortages due to the scenario that there is a reduction in power generation and consumption is increasing. It includes provinces in northern China, northeast China and southern China. Large-scale power cuts are underway in Liaoning, Jilin and Heilongjiang provinces in northeast China. The cuts, which were initially limited to factories, have now reached households, with citizens complaining of increased periods of supply disruptions.

In many parts of the country, local administrations have issued notices that the power supply will be off for a few days. A letter has been sent to factories in the eastern Chinese province of Jiangsu saying there will be no power supply until October 7. The factories of some of the companies supplying parts to Apple and Tesla will remain closed for the next week, informed local sources and officials. The administration in the Guangdong province in southern China issued a notice to all citizens a few days ago, urging them to avoid excessive use of electricity. Nearly 11 provinces in China have exceeded their annual electricity consumption limit and are pressured by the government.

In the last few months, the ruling communist regime in China has launched a crackdown on technology as well as the real estate sector. At the same time, manufacturing and other sectors have been hit hard because of the Coronavirus outburst in some provinces. This impacts the Chinese economy, which could be exacerbated by the power shortages, say analysts. China is known as the world’s largest energy producer. Analysts have also pointed out that power shortages in many parts of the country are even hurting China’s international image.