Power cuts hit Chinese factories and homes | The young witness
Global buyers face possible shortages of smartphones and other goods before Christmas after blackouts to meet official energy consumption targets forced Chinese factories to close and left some households in the dark.
In the northeastern city of Liaoyang, 23 people were hospitalized with gas poisoning after the ventilation of a metal casting factory was cut due to a power outage, according to the report. the public television channel CCTV. No deaths have been reported.
Factories have been slowed down to avoid exceeding energy consumption limits imposed by Beijing to promote efficiency.
Economists and an environmental group say manufacturers used up this year’s quota faster than expected as export demand rebounded after the coronavirus pandemic.
A supplier of components for Apple’s iPhones said it had suspended production at a factory west of Shanghai on orders from local authorities.
The disruption of China’s vast manufacturing industries during one of their busiest seasons reflects the ruling Communist Party’s struggle to balance economic growth with efforts to curb pollution and greenhouse gas emissions. .
“Beijing’s unprecedented determination to enforce energy consumption limits could lead to long-term benefits, but the short-term economic costs are substantial,” Nomura economists Ting Lu, Lisheng Wang and Jing Wang said on Monday. .
They said the impact could be so severe that they lowered their economic growth forecast for China to 4.7%, down from 5.1% a year earlier in the current quarter.
They cut their annual growth outlook to 7.7 percent from 8.2 percent.
Global financial markets were already on the verge of a possible collapse of one of China’s largest real estate developers, Evergrande Group, which is struggling to avoid default on billions of dollars in debt.
Manufacturers are already facing processor chip shortages, disruption in shipments and other lingering effects of the global halt in travel and trade to tackle the coronavirus pandemic.
Residents of northeast China, where fall temperatures are dropping, are reporting power cuts and have called on the government on social media to restore supplies.
The crisis comes as world leaders prepare to attend a United Nations environmental conference by video link on October 12 and 13 in the southwestern city of Kunming.
This increases pressure on President Xi Jinping’s government, as host of the meeting, to show that it is sticking to emissions and energy efficiency targets.
China is one of the world’s largest emitters of climate-modifying industrial gases and consumes more energy per unit of economic output than developed countries.
Associated Australian Press