Widespread power limitation in China- beginning of a ripple effect

Image from Twitter

Chinese social platforms like Weibo and Wechat and overseas social networks including YouTube and Twitter all reported the recent widespread power limitation that happened in China.

Most of their reports were actually groundless. In fact, all those Chinese financial analysts are deeply aware of what is actually happening in China, but they all chose to use environmental protection or low temperature as excuses for this electricity limitation. The reason is that the CCP do not allow them to tell the truth.

The CCP is seemingly experiencing an incongruous conflict of interests between its ministry of coal industry and its electricity bureau. Recently skyrocketed coal price in China was caused by the surge in demand for coal during the winter heating season and the huge coal supply shortage caused by the Australia-China trade dispute. And this has led to China’s electricity provider walking on even thinner ice and has to massively cut down electricity supply to offset the cost surge.

In China, both coal and electricity enterprises are controlled by big families of the CCP’s top executives. The warfare between coal and electricity reflects the aggregated internal conflicts amongst different fractions of the CCP, and this will cause ripple effect towards other industries.

The impact of this conflict is so far-reaching and it is now beyond the capability of the government to control or slow it down.   In fact, Chinese coal enterprises has been in a difficult financial situations for quite some time. According to data, asset-liability ratio of coal enterprises in China has been well above 70% mark in 2019, and some were as bad as 85%.

Enterprise
name
Revenue
(in 100 million rmb)
Net profit
(in 100 million rmb)
Total Asset
(in 100 million rmb)
asset-liability
ratio
Pumei3310.71244584.86%
Datong Coal378-2.91292384.93%
Yangquan Coal3580.065219285.51%
Lu an338-0.14208384.69%
Data from Twitter

Coal is probably the first few sectors in CCP-controlled China that are experiencing some underlying troubles. The real estate market, stock market, Chinese currency and many more are coming down the way.

As long as CCP is still controlling the Chinese state apparatus, it might still be able to maintain the false prosperity through data fabrication and massive money printing. But the innocent Chinese people will have to pay for the consequences of all measures the CCP came up with to prolong its last breath. The longer the CCP lives, the more the world will suffer.

Author: rosabona

Editor: XO酱

Disclaimer: The views expressed here are those of the authors and do not necessarily reflect the views of GNEWS.org.

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