China has been the world’s largest economy for the past ten decades. Pioneer in the energy transition worldwide. It’s also not free. It has been the biggest energy consumer on Earth in recent years. In his recent five-year plans, however, he suggested interesting and active strategies to reduce the effects of climate change in his territory. Its coal public policies have received particular attention. On the one hand, production and consumption of coal fell dramatically between 2015 and 2020. Particularly, in 2019, the percentage dependence had fallen. From 80% to 51.8%Xi Jinping on the other side, listed the goals and objectives of the Chinese government. Become a carbon neutral country by 2060. It seems as though it will be over even at the start of the post-epidemic economic rebound.Green growth“.
China still faces a major energy crisis, despite the above factors. Intermittent power outages occurred in 20 out of 31 provincesThere is also limited power supply. It causes uncomfortable interruptions for ordinary people, such as candlelight dinners and elderly people who can’t leave their apartment because the elevator doesn’t work; they cannot transport working appliances; and some people have limited water supplies. Despite all this, The problem doesn’t stop thereThe current power shortage has impacted the supply chains and production lines of several industries that are located in China. The problem has now begun to affect economies around the globe.
To avoid further complexity, the Asian country will need to resort to the annoying and controversial coal to solve its problems.
How did this crisis occur?
The year 2021 is very unique and interesting for the global market. The global economy saw a significant reactivation of large parts of its operations after the COVID-19 Pandemic. It was marred by widespread lockdowns across the globe. This has led to an oversupply in raw materials and components. It also made them more expensive, causing severe shortages. This shortage can hinder the supply chain in a world where industries are “too” interconnected. We have seen it. Semiconductor chipTogether with cornTogether with GasEven with British driver. This is a partial explanation for China’s current energy crisis.
Don’t put all your meat on the grill. There isn’t enough power. While maintaining all industriesThey have been able to use coal in new ways they have not seen in recent years.
However, when the use of coal is in contradiction to China’s restrictions on fossil fuels for many years, it can become a problem. This problem is not limited to China. The same was true for Australia. They used to import most cheap coal from the country.Prohibited to support investigations into the origin of the coronavirusThis is a clear indication that the Chinese are responsible. Generators are more expensive to produce cheap coal because it is harder for them to meet consumer demand. Because interest rates cannot be raised based on China’s open markets, you have to limit the supply.
What is the future?
China ordered 70 coal mines to be opened in Inner Mongolia to reduce the power shortage. Increase your performance by 10%Approximately 100 million tonnes The decision instantly reduced the global mineral prices to a certain degree. It appears that this will give Chinese citizens a break by restoring electricity supply to their homes and factories, without worrying about inflation due to price increases.
Similar to the central government Will release Australian coalThey have been stored for almost a year since the ban. The fall in fuel prices and increased power supply will result in the loss of approximately 1,000,000 tons. While this isn’t officially news, it means that China could resume trade with Australia within the next weeks to keep the fuel flowing.
These changes in China’s energy policy strategy will be temporary and last until the end. However, this is contrary to recent practice. advertiseHis country will cease participation in the construction of any coal-fired power plant in the world before the United Nations. Most importantly, COP26, the International Conference on Climate Change held in Glasgow, is only one month away.So far, China’s participation Has not been confirmed.
Who will save Christmas?
China’s energy crisis has a far-reaching impact, particularly in this year. The Christmas season is fast approaching and China is the largest exporter in the world is hard at work to produce. Every event in China’s economy has an effect on the world. However, in the next few weeks we will be buying more products from them. If the power supply is not controlled, the factories won’t be able meet international demand. Consumers have huge demand.
It is important to remember that China is a key link in the production chain for jets of the United States, Chile, Germany, and other countries. If you add this year’s general chip shortage, The situation may get complicated. If you are interested in these GadgetsOr, the appliances we wish to purchase at Good End and Christmas are very costly or disappear from the shelves.
The events in China could be an enlightening warning tale, warning about the unbudgeted complications of urgent energy transitions around the globe. It is hoped that it will not just give up decarbonization but also look for it by taking into account its most intricate details.