Friday, 22 October 2021

China power outages pose new threat to supplies of chips and other goods

5 min read

Government efforts to curb energy consumption to reduce carbon emissions, along with surging coal prices has led to power outages across China’s manufacturing hubs. This poses a threat to further disrupt strained global supply chains for semiconductors and other vital goods. China’s powerful economic-planning agency has set a target to cut energy intensity per unit of GDP by about 3% from last year, as part of a bid by Beijing to reach peak emissions before 2030. This means that electricity use has to grow at a lower rate than GDP. In the first half of 2021, however, electricity use rose 16.2%, while GDP increased 12.7%, with GDP expected to slow further in the second half of the year.

 

Re-disseminated by Wealth and Society from The Wall Street Journal



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