China suffers worst power blackouts in a decade, on post-coronavirus export boom, coal supply shortage
- Provinces across China are struggling with blackouts, as authorities use restrictions to curb energy use and manage supply
- Analysts blame the resurgence of manufacturing, a coal shortage and China’s central economic planning for the problem
Businessman Lin Xianxin was finally starting to see his luck turn around after production at his Wenzhou factory was disrupted by the coronavirus pandemic early this year.
With China’s economy rapidly recovering from the outbreak and the close of the year bringing a rush of seasonal orders, Lin was running his factory at full capacity and well on his way to recouping his first-quarter losses.
But all that came grinding to a halt on Tuesday last week, when authorities cut electricity to his business.
“It hit us badly,” said Lin, the manager of Wenzhou Ming Yu Packaging in the eastern port city. “Cutting off the electricity at the busiest time of the year is unreasonable. All the orders after Tuesday had to be delayed, and some may be cancelled.”
Wenzhou has not seen large-scale electricity rationing in years, according to Lin, and this month’s blackouts – three in total – would cost him 50,000 yuan (US$7,637) per day.
For a small factory like Lin’s, still struggling to get back on its feet, the losses are huge – and he’s not the only one feeling the pressure.
