Japan Firms In China Fret Most About Power Shortage, Not Evergrande

Japan Firms In China Fret Most About Power Shortage, Not Evergrande

Andrew H. Sweet

Should industrial production become sluggish in China against a backdrop of the brunt of the power shortfall, Japanese firms would struggle to procure necessary components and be compelled to trim their output outlook, probably eroding their profits.

In recent months, China has been suffering from a severe electricity shortfall as the leadership of President Xi Jinping, who has promised China will attain a peak in carbon dioxide emissions before 2030, has strengthened measures to tackle climate change.

Several regions in China have been compelled to take steps to save electricity, while government regulations on energy consumption and higher coal prices have been forcing a large number of factories to suspend their operations and curb their output.

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