Massive blackouts lead to industrial closures due to power shortages in China. With Christmas fast approaching, China is facing more pressure from unexpected power outages as it seeks to boost production as it receives large orders from the West as well as Europe. China may not be able to deliver on time. This time around, empty rocks will be on display in most malls and supermarkets in Europe as well as in the West. Severe power shortages are mainly on the east coast of China. It should not change that most of China's population lives on the east coast. It said it would not be able to supply electricity uninterruptedly for several months, officials said in a statement.
The three industries are in dire need of electricity as countries emerging from the lockdown are placing orders, especially for aluminum, steel, and cement. Cement shortages not only have a serious impact on China's construction sector but also indirectly affect China's economic situation. There is also intense pressure on the steel and aluminum industries to increase production but China has imposed restrictions on the use of electricity in all three industries. Australia, already angry at China on coronavirus, has previously banned China over its 5G network. Australia has warned it will impose a ban on coal exports at some point as the war of words intensifies in the aftermath. The main clients for the three Taiwanese companies are Apple and Tesla facing a power crisis.
The result was a coal shortage caused by China's search for alternative routes, with the supply of coal being disrupted. It is already having an impact on electronic components exported from China. One reason is the US ban on exports of electronic chips to China, but another is the drop in production by Covid. Chinese President Xi Jinping will not have any problems in the coming days. He toppled all those who thought he would grow up to be rivals in the Communist Party of China but now it will not be so easy to deal with the newly born dissent. It has to be said that it will be difficult for a CCP who has always told only lies, as seen above, to hide the facts in the past.
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