Blackouts and power cuts in the world’s second-largest economy have drawn attention to fuel supply problems that could complicate the country’s pandemic recovery.

Struggling energy companies in China have cut off power to select Chinese industrial players in recent days as the high price of fuel pushes the firms to ration power supplies. Traffic lights and street lamps went dark in many cities in China in recent weeks. Sales of candles skyrocketed as millions of homes and businesses went without power.

Shortages currently plaguing Europe, the UK and now China can give the impression that a global energy crisis has begun. While some of their problems overlap, so far China is the only one this year to report widespread power outages.

China is the world’s top consumer of coal and, unsurprisingly, the world’s biggest producer of greenhouse gases. Beijing recently made reducing the country’s carbon emissions a top priority, with the aim of reaching carbon neutrality by 2060. This led to the country curbing domestic coal production, even while over 70% of the country’s electricity, according to Bloomberg, is still sourced from coal.

So now coal prices are skyrocketing. Unlike in Europe, where consumers are worried about spiking heating costs this winter, utilities’ prices in China are largely regulated by the government. This keeps power companies from passing on the cost to consumers and sticks the suppliers footing the high cost of the coal needed to generate electricity. To cope, many companies have opted to scale back production, curbing the country’s supply of energy.

Further, China’s push to host a “green” 2022 Olympics and Paralympic Winter Games is expected to boost clean energy demand including natural gas consumption over the coming winter-spring heating season, but this has also raised concerns about costlier natural gas as global prices surge to record levels.

Reference:
https://www.spglobal.com/platts/en/market-insights/latest-news/energy-transition/091521-analysis-chinas-green-winter-olympics-2022-to-boost-natural-gas-demand
https://www.dw.com/en/china-reaches-for-strategic-power-cuts-amid-energy-crisis/a-59367176

More News
Emerging Trends in Microsphere Technology
News · 01/02/2025

Targeted drug delivery revolutionises treatment by focusing medications on specific tissues, reducing the impact on healthy cells. Scientists enhance this precision with carriers like microspheres and nanoparticles, controlling release and absorption. Microspheres, made from biodegradable proteins or polymers, sustain drug release, making them ideal for targeted therapies, especially in oncology. Beyond drug delivery, microspheres open new possibilities across industries—from next-gen coatings to thermal insulation. With tailored sizes, shapes, and materials, they drive advancements in pharmaceuticals, advanced materials, and more.

READ MORE
US FDA proposes mandatory Asbestos testing in Cosmetics with Talc
News · 01/02/2025

The U.S. Food and Drug Administration (FDA) has proposed a new rule to require standardized testing of talc-containing cosmetics for asbestos. The FDA noted that this move aims to protect consumers from potential harm posed by asbestos, a known carcinogen linked to serious illnesses such as lung and ovarian cancers.

READ MORE
Chinese New Year affects Asian freight traffic
News · 20/01/2025

As one of the most significant holidays in China, Chinese New Year (CNY) profoundly impacts global shipping, logistics, and supply chains. Scheduled to begin on January 29, 2025, this festive period lasts up to two weeks, with many factories, ports, and businesses shutting down or operating with limited staff. Understanding the implications of CNY on your supply chain is critical to avoid disruptions and ensure seamless operations.

READ MORE
High Freight Rates Strain Global Supply Chains
News · 04/11/2024

Disruptions in the Red Sea, Suez Canal, and Panama Canal have driven up shipping costs, sending shockwaves through the global economy.

READ MORE
Fond memories from #CPhIMilan2024..…
News · 29/10/2024

It was truly heartwarming to see so many clients and associates visiting our stand, even as late as at the end of the show, sharing drinks and engaging in conversations.

READ MORE
Fears of strike in US, its impact on ocean freights & what lies ahead…
News · 01/10/2024

Ocean freight rates on key global container routes have fallen again. Despite the upcoming Golden Week in China, which usually drives demand, the situation this year is slightly different, and the expected rate increase may not happen.

READ MORE
Highly Potent Active Pharmaceutical Ingredient (HPAPI) | Challenges & Opportunities
News · 02/08/2024

Highly potent active pharmaceutical ingredients (HPAPIs) are at the dangers of cross-contamination with other product forefront of pharmaceutical manufacturing. They are particularly common in targeted therapies and personalized medicines. This is primarily due to their potent therapeutic effects at low dosage forms.

READ MORE
It’s all happening again: The supply chain is under strain…
News · 02/07/2024

The floating traffic jams off ports. The multiplying costs of moving freight. The resulting shortages of goods. All of this had seemed like an unpleasant memory confined to the COVID-19 pandemic. But no such luck!

READ MORE
Sudden container crunch sends ocean freight rates soaring…
News · 05/06/2024

An ocean container capacity crunch has hit global trade just as peak shipping season starts, with freight spot rates up some 30% over the past few weeks and heading higher.

READ MORE