Global economic growth threatens China’s economic growth, warns banks

China’s economic reforms

Energy shortages in at least 10 parts of China pose a threat to all household goods because the world’s most important industries have been forced to cut production, financial banks have warned.

Electrical problems in Chinese manufacturing offices and factories has grown this month as regions struggle to meet mid-term government reserves at the same time as coal prices rise.

Bruce Pang, from China Renaissance, a savings bank, said the power outage could result in a GDP growth of 0.1 to 0.15% in the third and fourth quarters.

“We anticipate that power outages, along with… The suspension of work in the winter, as well as fluctuations in electricity prices, are posing a challenge to China’s manufacturing operations,” Pang said.

“We anticipate that industrial growth in September could be pulled up by 4% to 4.5%.”

Nomura, a central bank in Japan, said it was “impossible” to expect China to continue to grow and deal with the crisis that the government is destroying.

“We will also continue to estimate our quarterly GDP growth for the quarter and four quarters of 2021 and we expect. .

Last year, Xi Jinping, President of China, vowed that the world’s greatest destroyer would come Large-scale carbon emissions by 2030 as well as political neutrality by 2060.

Rising prices have also helped reduce electricity costs. The price of representative coal was Rmb1,086 ($ 168) per tonne last week, an increase of 56% since the beginning of the year, according to China Electricity Council.

Factories have been ordered to use less energy and even shut down several days a week to reduce their demand.

At least 15 Chinese companies, including Yunnan Aluminum, have said the distribution of electricity and the shortage has affected their production. Yunnan controls 10% of the country’s aluminum output.

Taiwanese electronics manufacturers say their crops in eastern China have been forced to stop working due to power cuts.

Eclat Forever, which manufactures touch screens and printed boards, told Monday on the Taiwan Stock Exchange that its company in Kunshan, the Taiwanese electronics manufacturer between Suzhou and Shanghai, has suspended operations. This was due to the fact that power in the companies was cut off from noon on Sunday until midnight on September 30.

More than 15 Taiwanese companies with Kunshan factories released the same on Sunday and Monday. Taiwan-based manufacturers in Shanghai have been used to address energy shortages.

The China Development and Reform Commission, a planning agency, criticized some areas in August for not achieving power targets by the end of the year.

Not to mention, researchers said, prompted governments to increase their dependence on coal-fired power, forcing officials to distribute electricity.

The demand for electricity in factories and industries came after China recovered rapidly from the coronavirus epidemic, and increased energy efficiency.

As told by Primrose Riordan, Kathrin Hille, and Xueqiao Wang

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