Power cuts in China force supplier’s factories, homes to stay in dark
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Power cuts force Chinese factories to shut down. It may result in possible shortages of smartphones and other goods soon. Some homes are also facing the brunt. The disruption to manufacturing industries reflects the country's struggle to balance economic growth with efforts to check pollution
In what may result in possible shortages of smartphones and other goods soon, power cuts to meet government energy use targets have forced Chinese factories to shut down. Some homes are also facing the brunt.
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During one of the busiest seasons, the disruption to China's manufacturing industries reflects the Communist Party's struggle to balance economic growth with efforts to check pollution.
In a report on Monday, Nomura economists Ting Lu, Lisheng Wang and Jing Wang, said, "Beijing's unprecedented resolve in enforcing energy consumption limits could result in long-term benefits, but the short-term economic costs are substantial."
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Under orders from local authorities, Apple Inc's iPhones’ components supplier said it suspended production at a factory, which is situated west of Shanghai.
Apple components supplier Eson Precision Engineering Co Ltd said on Sunday, it would halt production at its factory in Kunshan, west of Shanghai, through Thursday "in line with the local government's power restriction policy." Eson said the suspension shouldn't have a 'significant impact' on operations.
The manufacturers have been already facing shortages of processor chips, disruptions in shipping and other effects of the global shutdown of travel and trade in the fight against the coronavirus pandemic.
(With inputs from agencies)