The Economic Impact of Electricity Shortage in Communist China

Author : MOS Fitness Group – Ivy001

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Residents in northeastern provinces of China experienced unannounced power outages as power shortages began spreading from factories to civilians. People in Liaoning, Jilin and Heilongjiang provinces took to social media to complain about living without heat, electricity, elevators, traffic lights and streetlights.

As a result of the energy shortage, the CCP government warned that it will continue until March or April of next year.

The problem of power shortage in the Communist Party of China did not just start today. As early as May this year, the first signs of the problem began to emerge: Guangdong, Jiangsu and Zhejiang, the southern provinces with the largest economies, began to restrict the use of electricity in factories in May. From “open five days and close two days per week ” to “open two days and close five days per week “, the worst factories are now “open one day and close six days per week “, which is almost equivalent to a total shutdown. Many factories have to bear the extra burden of diesel generators to maintain their production operations.

Guangdong, Jiangsu and Zhejiang account for 30% and up of the country’s economy, so you can imagine how much impact this will have on the economy. Three of the publicly traded Taiwanese electronics companies,(these electronic companies never have been lack down the power in the past, never) including two suppliers to Apple and one to Tesla, issued statements on Sunday night warning that their factories were among those affected.

First, manufacturers and factories are definitely taking longer and delaying the completion of orders. This will make an already fragile supply chain even worse, and the price spikes due to severe supply shortages, will continue.

Second, this will certainly lead to a significant increase in production costs, and prices will continue to rise. As the end of supply chain —— U.S. market , would deepen inflationary pressures. At present , SEC has little to offer in response to the resulting inflationary economic bubble.

Finally, the shortage of electricity has led to low productivity in Chinese factories, forcing a serious outflow of orders. This is bound to have a negative impact on the future development of the Chinese economy, with far-reaching adverse effects on the economic woes that China is facing with the withdrawal of foreign capital.

It is thus clear that under the authoritarian regime of the CCP , China’s economy is falling into a vicious cycle where lack of food, coal, electricity, water, money, and …… will become the norm for the Chinese economy. And this will also inevitably lead to changes in the political and military landscape.

Reference:
Millions Of Chinese Residents Lose Power After Widespread, “Unexpected” Blackouts; Power Company Warns This Is “New Normal”

This artical is only on the author’s opinion.

Proofread/Posted by: Sylvia

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