China is currently going through an unprecedented power shortage. There are long power cuts in many provinces. Dozens of American companies\u2014with production units in China\u2014have been hit hard by the power cuts. Industrial activities of China have been affected by 45 percent. The business has suffered huge losses due to the unexpected power crisis. This has resulted in loss of business opportunities, large number of orders canceled and raw material wasted. The power crisis in China has been going on for the past several weeks. This has created a threat of negative impact on the world economy.<\/p>\n
In many cities, the situation is so bad that electricity is available only for an hour or two. This has led to the closure of factories. According to the Hong Kong newspaper South China Morning Post, much valuable equipment has been damaged due to frequent power outages. The raw material is wasted due to disruption in the manufacturing process. Sensitive supply system has been breached. Due to cancellation of orders, business opportunities are being lost.<\/strong><\/p>\n The main reason for this major power crisis arising in China is the reduction of coal-based power stations in their production. This has happened because of disturbing their economic coordination with the industries. It is being told that a major reason for the power crisis is that China has reduced its electricity generation capacity by three percent to reduce carbon emissions in the country. By 2025, it has to reduce the generation capacity of coal-based power stations by 13.5 percent. This power crisis has caused huge damage to the industries of the world’s second largest economy. China, which is called the factory of the whole world, its image and system, has deteriorated. To control the situation, out of 31 state-level power systems, 20 are getting cut in power supply and are able to provide electricity for only a few hours a day.<\/p>\n Due to the deepening of the power crisis in China, the possibility of affecting the supply of raw materials for many commodities in India has started deepening. These mainly include various chemical and pharmaceutical raw materials, steel, furnace oil, plastics, electronics and auto parts. Due to the impact of production in China, the price of chemicals in India has started increasing. In the near future, there is a possibility of increase in the prices of other raw materials as well.<\/strong><\/p>\n After the next 10-15 days, the supply of many raw materials may be affected. Chemicals entrepreneurs said, due to the crisis in China, the prices of chemicals in India have increased by 5 to 40% in the last 15 days.<\/p>\n India is still dependent on China for raw materials and 70 percent of its raw material comes from China.<\/p>\n According to the data of the Ministry of Commerce, the import of chemicals from China has increased by 41 percent in January-August this year as compared to the same period last year.<\/p>\n
\n\n\t