China’s Power Crunch Is Next Economic Shock Beyond Evergrande

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    • #447167
      PADemD
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      • Total Posts: 2,367

      China may be diving head first into a power supply shock that could hit Asia’s largest economy hard just as the Evergrande crisis sends shockwaves through its financial system.

      The crackdown on power consumption is being driven by rising demand for electricity and surging coal and gas prices as well as strict targets from Beijing to cut emissions. It’s coming first to the country’s mammoth manufacturing industries: from aluminum smelters to textiles producers and soybean processing plants, factories are being ordered to curb activity or — in some instances — shut altogether.

      Almost half of China’s 23 provinces missed energy intensity targets set by Beijing and are now under pressure to curb power use. Among the worst hit are Jiangsu, Zhejiang and Guangdong — a trio of industrial powerhouses that account for nearly a third of China’s economy.

      “With market attention now laser-focused on Evergrande and Beijing’s unprecedented curbs on the property sector, another major supply-side shock may have been underestimated or even missed,” Nomura Holding Inc. analysts including Ting Lu warned in a note, predicting China’s economy will shrink this quarter.

       

      https://www.bloomberg.com/news/articles/2021-09-25/china-s-power-crunch-is-next-economic-shock-beyond-evergrande

    • #447168
      PADemD
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      • Total Posts: 2,367

      Factories are already closing and street lights are being turned off.

    • #447178
      Bearian
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      • Total Posts: 912

      China is leading the way in the fight against global warming. Its going to be painful. We are going to have to give up on all the frills. People are going to be pissed when you take away their ATV’s and Snowmobile’s ..Freedom!

      • #451622
        Voltairine
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        • Total Posts: 2,567

        is a silly post-truth name for Peak oil and then Peak Fossile Energy and Peak Everything.

        If we were honest about Peak oil etc., we would be talking about how to use what remains in socially just and responsible way. With “Global warning” we are talking everything else, and the class war by the ruling class against the caring classes intensifies.

        Aloha!

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