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Worsening power shortages in northeast China left homes without power and shut down production at many factories, while some stores operated by candlelight as the economic toll of the squeeze increased .
Residents of the northeast, where fall temperatures are dropping, have reported power cuts and called on social media for the government to restore supplies.
Rationing has been implemented during peak hours since last week, while residents of cities, including Changchun, said the cuts were happening earlier and lasted longer, state media reported.
China’s power shortage, caused by limited coal supplies and tougher emissions standards, has hurt production in industries in several regions and poses a risk to already strained global supply chains.
Manufacturers face existing processor chip shortages, shipping disruptions and other lingering effects of the global halt in travel and trade to tackle the coronavirus pandemic.
In the northeast, factories have been idled 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.
In Liaoyang City, 23 people were hospitalized with gas poisoning after the ventilation at a metal casting factory was cut off after a power outage, according to public broadcaster CCTV.
The suspension of production at some factories has raised concerns about a possible shortage of goods before Christmas, including smartphones and devices.
Apple component supplier Eson Precision Engineering said on Sunday it would halt production at its Kunshan plant, west of Shanghai, until Thursday “in accordance with the local government’s energy restriction policy.” .
Eson said the suspension is not expected to have a “significant impact” on operations.
Apple did not immediately respond to an Associated Press question about the possible impact on iPhone supplies.
The impact on homes and non-industrial users comes as nighttime temperatures drop to near freezing point in China’s northernmost cities. The National Energy Administration has asked coal and natural gas companies to ensure sufficient energy supplies to keep homes warm during the winter.
Liaoning Province said power generation had declined significantly since July and the supply gap widened to a “severe level” last week. It extended power cuts to industrial businesses to residential areas last week.
Huludao City told residents not to use energy-intensive electronic devices like water heaters and microwave ovens during peak periods, and a resident of Harbin City, in Heilongjiang Province, told Reuters that many shopping malls were closing earlier than usual.
The power crunch is disrupting Chinese stock markets at a time when the world’s second-largest economy is already showing signs of slowing. The Chinese economy is grappling with brakes in the real estate and tech sectors and concerns about the future of cash-strapped real estate giant China Evergrande.
Stricter emissions standards have partly led to the electricity shortages.
China has pledged to reduce its energy intensity by around 3% in 2021 to meet its climate targets. Provincial authorities have also stepped up enforcement of emission restrictions in recent months after only 10 of the 30 mainland regions managed to meet their energy targets in the first half of the year.
The ruling party is also gearing up for the Winter Olympics in Beijing and nearby Shijiazhuang in February, a time when it will want clear blue skies.
The power pinch has been affecting manufacturers in major industrial centers on the east and south coasts for weeks.
At least 15 Chinese companies have said in exchange documents that production has been disrupted by power cuts, while more than 30 Taiwan-listed companies with operations in China have halted work to comply with power limits. .
The fallout from the power shortage has prompted some analysts to downgrade their economic growth prospects for China in 2021, and also warned of possible global supply shortages of textiles, toys and parts. machines.
With Reuters and Associated Press
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