Some Chinese cities have imposed restrictions on electricity consumption due to a shortage of thermal coal. Its deficit was due to the trade conflict with Australia. The country is one of the largest suppliers of coal to China, writes Financial Times . In fact, Australia left some of the provinces without electricity, the authorities decided to cut it off from the economy.
Chinese factories and stations depend on Australian coal. Now they are in trouble and looking for an alternative. Coal reserves in the country fell to a two-year low, and prices for it soared by 60 percent. In December, Hunan provincial authorities said institutions would cut electricity consumption to save money and turn off street lights in cities overnight. In the province of Changsha, they decided to cut off the power supply to the elevators.
China began a conflict with Australia in October after the latter called for an international investigation into the origins of the coronavirus. In November, Beijing decided to stop purchasing at least seven product categories from Australia.
Also, China increased duties on Australian wines. The authorities called it a devastating blow and filed a complaint with the World Trade Organization (WTO).