China’s electricity usage curtailment expands and economy shrinks


In the power supply problem, China’s power limits and forced reductions in factory production are becoming more common. Experts predict that the impact of Beijing’s new policy will have a negative impact on the country’s economy.

According to local media, according to Business Herald in the 21st century, the electricity crisis has spread to more than 10 provinces, including China’s economic powers Jiangsu, Zhejiang and Guangdong. These are three provinces that make up almost one-third of China’s economy.

Due to supply shortages, 14 cities in northern Liaoning were also ordered to have an emergency power outage, a notice posted to a local grid operator’s social media account on September 23 said.

The crackdown on electricity consumption is being driven not only by soaring coal and gas prices, but also by Beijing’s emission reduction targets.

Nomura Holdings analysts Alongside the real estate sector, the shock to the Chinese economy due to power supply problems may be underestimated or overlooked, and the Chinese economy shrank from the previous forecast of 4.4% to 3.0% in the fourth quarter. Note that we expected it to be small.

Fran Wan