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Global Energy Crunch Leaves China Facing More Power Shortages

  • China poised for winter power deficit despite preparation
  • Coal and natural gas price rally may force factories to shut
The Golmud Solar Park In Qinghai, One Of China's Six Clean Energy Pilots
Photographer: Qilai Shen/Bloomberg

China is staring down another winter of power shortages that threaten to upend its economic recovery as a global energy supply crunch sends the price of fuels skyrocketing.

The world’s second biggest economy is at risk of not having enough coal and natural gas -- used to heat households and power factories -- despite efforts over the past year to stockpile fuel as rivals in North Asia and Europe compete for a finite supply. Demand for heating will jump when temperatures turn colder over the next few months, which could trigger power rationing similar to those seen last winter and over the summer.