As the power crisis shifts from the factory floor to people’s homes, the State Grid Corporation of China, the Chinese power company, said on Monday that it will do its best to avoid power outages to meet basic residents’ needs. China’s energy crisis is forming the latest impact on global supply. As the world’s largest exporting country’s factories, chain stores are forced to conserve energy by restricting production. When the disruption occurs, manufacturers and shippers are racing to meet all kinds of needs from clothing to toys during the year-end holiday shopping season, struggling to cope with the interrupted supply line due to soaring raw material costs, long-term port delays and shortages of containers. Chinese manufacturers have warned that strict electricity consumption measures will lead to a sharp decline in output in economic powerhouses such as Jiangsu, Zhejiang and Guangdong — these provinces together account for nearly one-third of China’s GDP — and may push up prices. Local governments are ordering blackouts because they are trying to avoid missing targets to reduce energy and emission intensity, while some are facing actual power shortages. Clark Feng (Vita Leisure Co.) buys tents and furniture from Chinese manufacturers and sells them overseas. He said the power restrictions in the eastern province of Zhejiang, where the company is located, have dealt yet another blow to the company. He said that the province’s fabric manufacturers facing cessation of production have begun to raise prices and postpone accepting new overseas orders.
News Source :Backtrack
