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Power Rationing is Implemented in China

September 30, 2021

Latest company news about Power Rationing is Implemented in China

Affected by the epidemic in Southeast Asia, global orders have flooded into China, causing factory power consumption to surge by 20.6%. Recently, the Chinese government has issued a dual-control environmental protection policy in order to complete the industrial upgrade of "high investment, high energy consumption, and high emission" enterprises, step out of the comfort zone and avoid falling into a crisis.


In response to the requirements of the National Development and Reform Commission, in order to ensure the completion of energy consumption intensity reduction targets, various localities have introduced policies to respond. Limiting production and electricity is one of the most important control methods.


For a time, Jiangsu, Qinghai, Guangxi, and many other places have issued the most stringent power-cutting orders, and some enterprises' production capacity has been affected. In Dongguan, factories generally receive notices for two days of work and five days off, while some small and micro enterprises work for one day and six days off.


latest company news about Power Rationing is Implemented in China  0


The curtailment of electricity is really not enough electricity, but the country's macro-policy regulation and control.


According to the latest news from the World Wide Web says the power supply of the entire country is abundant. China’s current total installed power generation capacity is as high as 2.2 billion kilowatts, which is about twice that of the United States. This total power generation is used to support about 70% of China’s GDP in the United States. Even considering that its manufacturing industry accounts for a large proportion, there is still a high room for realization.


The reduction of ocean freight for this round has nothing to do with the shipping company's looting of cargo. Power cuts in factories in some parts of China are already an established fact. As for the duration of this round of power cuts, it is still unclear. But what is certain is that power cuts in factories will inevitably affect the output of products.


Under the condition of restricting electricity use, the delivery pressure of the factory is high, and supplier delivery problems caused by limited capacity are inevitable.


An industry insider analyzed that for manufacturing companies, power curtailment will lead to a decrease in operating rate. If a long period of power curtailment produces, it will affect not only delayed delivery, but also market raw material supply, changes in market conditions, and even logistics. Prices are also affected.


Under the power curtailment order, the factory stopped production and reduced production, and the shipment of the entire cross-border export bank dropped significantly in the short term.


Shipping companies foresee a decline in cargo volume in this wave, so they are rushing to cut prices and grab cargo. Ensure that the latest sailing schedule can be full.


From another perspective, Made in China no longer only pursues quantity, but focuses more on quality.


At present, OLYCOM is still in normal production, I would like to remind you that If you need any fiber optics product, like industrial network switch, POE network switch, fiber media converter, SFP transceiver, etc, please contact OLYCOM anytime. Olycom always pays attention to quality. Our Mission is to connect people faster and safer over longer distances via Ethernet and fiber optics.







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