HomeBUSINESSChina's largest manufacturing hub Guangdong province faces electricity shortage

China’s largest manufacturing hub Guangdong province faces electricity shortage

China’s largest manufacturing hub Guangdong province faces electricity shortage. The southern Chinese province of Guangdong, the country’s largest producer of production, has left its grip on power shortages following a shortage of rain, rising coal prices and industrial development within the country, which puts 10 percent of the country’s gross domestic product uncertain.

According to Nikkei Asia, the results are felt low in factories and offices of management, with one Japanese supplier of steel parts being sent to hasten the reorganization of work schedules after local authorities announced power cuts.

The big question that arises is how long will the power shortage last. A spokesman for Honda Motor said there was currently no impact on production. But if energy issues become chronic, they will be at risk of being trapped by global supply chains.

A Honda manager said that by turning off the electricity twice a week, we can still ensure adequate supply. With power outages twice a week, we can still ensure adequate supply.

On Thursday, a spokesman for China’s National Development and Reform Commission, China’s economic planning agency, acknowledged at a news conference that Guangdong and other southern provinces were facing power shortages.

China's largest manufacturing hub Guangdong province faces electricity shortage
China’s largest manufacturing hub Guangdong province faces electricity shortage

During a power outage, companies can only use enough electricity to perform important tasks, such as safety. Crossing the border causes fines in the form of extended border hours, according to Nikkei Asia.

Guangdong owns 8 percent of China’s population and some of China’s largest companies, such as Huawei Technologies, electric car manufacturer BYD, Midea and Tencent Holdings.

Meanwhile, authorities say the shortage of electricity is due to the drought and increased summer demand. Guangdong received about 40 percent rainfall from January to early April as in the same period last year, with temperatures between 2.2 degrees Celsius higher, local media reported.

Low coal collection – the result of rising prices – is also expensive. Prices for domestic coal stood at 878 yuan (USD 136) per ton at the beginning of June, up about 70 percent a year, based on 5,500 kilocalories per kilogram, showing official details.

Nikkei Asia also reported that broader economic issues are also at work. About 30 percent of Guangdong’s energy comes from Yunnan and other provinces.

One of its nuclear facilities, in the city of Guangdong in Taishan, has emerged from the risk of releasing radioactive material, CNN reported last week. However, Chinese authorities have provided few details about the situation while admitting that there was damage to the fuel rod on the plant.

Guangdong also witnessed the explosion of Covid-19 cases, which resulted in many flights being canceled and shut down in other cities.

The Guangdong health commission reported a total of six new cases in Covid-19 on Saturday, including two from Shenzhen and one from Foshan and Dongguan, the South China Morning Post reported.

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