The energy crisis in China struck in the country’s economy, since the rationing of electricity has reduced the internal production, reports Reuters with reference to the survey of economists.
The growth of exports slowed down in September – it increased by 21 percent compared with 2020, but in August it was 25.6 percent. Import also slowed down – compared with last year he increased by 20 percent in September, decreased after 33.1 percent in August. The positive balance of the trade balance (the difference between exports and imports) decreased.
Production activity in China decreased in September due to electricity constraints and raw materials price increases. “The rationing of electricity in China is likely to continue in the first quarter of 2022, since the environmental policy faces the lack of fuel and renewable energy sources,” said Chief Economist in China Barclays Jiang Chang. He added that in winter the priority in energy will be given to households, which will affect the productivity of the plants.
Analysts believe that the introduction of restrictions on the use of electricity can increase the costs of Chinese exporters fighting with a decrease in profitability due to failures in supply chains and labor costs.
Increasing the lack of electricity in China caused by the transition of a country for pure energy, fast-growing industrial demand and high prices for commodities, stopped production in many plants. Among them are large world companies, such as Apple and Tesla. Small businesses found in a long-term energy crisis are forced to close or use diesel generators who cost more than government power supply. According to the study of MySteel, due to the electricity deficit in China, the production of copper, aluminum and zinc has decreased in September, which caused the rise in prices for metals.