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China Power Supply Crunch Hits Toyota Operations: Energy Update

  • Stainless steel and ceramics hub Fujian latest to restrict use
  • Imports of coal and natural gas sought to ease energy crunch
Bloomberg business news
WATCH: China is rushing to get ahead of an energy crisis that has moved from factory floors to homes now. Enda Curran reports.(Source: Bloomberg)
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The world’s second-biggest economy is caught in the grips of a widening power crisis that’s threatening to stymie growth and further tangle already snarled global supply chains. 

At least 20 Chinese provinces and regions making up more than 66% of the country’s gross domestic product have announced some form of power cuts, mostly targeted at heavy industrial users. The reasons are two-fold -- record high coal prices are causing power generators to trim output despite soaring demand, while some areas have pro-actively halted electricity flows to meet emissions and energy intensity goals.