Power shortages in China hit homes and factories prompting global supply fears

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[ad_1] Widening power shortages in China’s north-east have left homes without power and halted production at numerous factories, while some shops operated by candlelight as the economic toll of the squeeze mounted. Residents in the north-east, where autumn temperatures are falling, reported power cuts and appealed on social media for the government to restore supplies. […]

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Widening power shortages in China’s north-east have left homes without power and halted production at numerous factories, while some shops operated by candlelight as the economic toll of the squeeze mounted.

Residents in the north-east, where autumn temperatures are falling, reported power cuts and appealed on social media for the government to restore supplies.

Rationing has been implemented during peak hours since last week, while residents of cities including Changchun said cuts were occurring sooner and lasting for longer, state media reported.

China’s power crunch, caused by tight coal supplies and toughening emissions standards, has hurt production in industries across several regions and poses a risk to already strained global supply chains.

Manufacturers face existing shortages of processor chips, disruptions in shipping and other lingering effects of the global shutdown of travel and trade to fight the coronavirus pandemic.

In the north-east, factories were idled to avoid exceeding limits on energy use imposed by Beijing to promote efficiency. Economists and an environmental group say manufacturers used up this year’s quota faster than planned as export demand rebounded from the coronavirus pandemic.

In the city of Liaoyang, 23 people were hospitalised with gas poisoning after ventilation in a metal casting factory was shut off after a power outage, according to state broadcaster CCTV.

The suspension of production at some factories prompted concerns over the possible shortage of goods ahead of Christmas, including smartphones and devices.

Apple components supplier Eson Precision Engineering said on Sunday it would halt production at its factory in Kunshan, west of Shanghai, until Thursday “in line with the local government’s power restriction policy.”

Eson said the suspension shouldn’t have a “significant impact” on operations.

Apple didn’t immediately respond to a question from Associated Press about the possible impact on iPhone supplies.

The impact on homes and non-industrial users comes as night-time temperatures slip to near-freezing in China’s northernmost cities. The National Energy Administration has told coal and natural gas firms to ensure sufficient energy supplies to keep homes warm during winter.

Liaoning province said power generation had declined significantly since July, and the supply gap widened to a “severe level” last week. It expanded power cuts from industrial firms to residential areas last week.

The city of Huludao told residents not to use high energy-consuming electronics like water heaters and microwave ovens during peak periods, and a resident of Harbin city in Heilongjiang province told Reuters that many shopping malls were closing earlier than usual.

The power squeeze is unnerving Chinese stock markets at a time when the world’s second-largest economy is already showing signs of slowing. The Chinese economy is grappling with curbs on the property and tech sectors and concerns around the future of cash-strapped real estate giant China Evergrande.

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