Since the beginning of the pandemic, China has faced several unexpected challenges. The trade spat with Australia, the continued South China Sea shipping congestion, and a shortage of coal supply are testing the country’s economic capabilities and problem-solving skills.
China has stepped up its efforts to engage Russia, Mongolia, and other third parties to fill their coal shortage.
Exactly a year ago, in October 2020, Chinese state-owned companies were ordered to stop the import of Australian coal, widely viewed as retaliation for Australia’s more critical stance on China. The restrictions on Australian coal naturally pose a new opportunity for other parties in the region, particularly in East Asia and Northeast Asia, to fill China’s coal shortfall.
But apparently it wasn’t enough. In June 2021, Chinese factories began to report power outages and electricity shortages. The Lantou Group’s September 28 report showed the provinces with the most severe power consumption problems to include Xinjiang, Qinghai, Yunnan, Jiangsu, Fujian, Guangxi, and Guangdong, where China’s major manufacturing companies are located.
In September alone, major supplier companies were struggling under power constraints. Pegatron, a company that produces parts for and assembles iPhones for Apple, reported “limiting electricity supply” in their Kunshan City factory. Moreover, the Global Times reported that “A textile factory based in East China’s Jiangsu Province received a notice from local authorities about power cuts on September 21. It will not have power until October 7 or even later.” The following week, on September 27, the national broadcaster CCTV reported that Heilongjiang, China’s northernmost province, will experience an acute power shortage.
China’s central and local governments alike are now actively looking for solutions to the domestic energy shortage before the winter, particularly in its northeastern provinces, which will face freezing temperatures in the coming months - The Diplomat - link - Bolor Lkhaajav - link - more like this - link
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