China issues electricity curtailment order

Power-curtailment orders

The State Development and Reform Commission recently named Qinghai, Ningxia, Guangxi, Guangdong, Fujian, Xinjiang, Yunnan, Shaanxi, and  Jiangsu as regions that need to improve their energy management, while "power curtailment orders" have been issued across the northeast and in coastal regions, catching many factories off guard.

Factories making printed circuit boards in Suzhou and Kunshan in the eastern province of Jiangsu were suddenly notified of a total power outage for five days without prior warning, a Taiwanese business association told RFA.

"All manufacturers in Kunshan have been notified of power outages," Kunshan Taiwanese Chamber of Commerce president Tsung Hsu-hui told RFA. "We were notified about a week ago, and it will last until the end of the month."

"We will have to review the situation at the end of the month," Tsung said, adding that production capacity will be cut by at least 20 percent for the month.

Hsu Cheng-wen of the Suzhou Taiwanese Chamber of Commerce said the entire Suzhou Industrial Park, the Greater Suzhou Industrial Zone, Suzhou New District, and Kunshan have all been affected.

"The power rationing in Suzhou and Kunshan has had no impact on people's daily lives, and the retail industry isn't affected," Hsu told RFA. "The biggest impact should be felt by the highest-polluting industries, like cement and plastics manufacturers."

"Most manufacturers have already applied for late delivery, which may incur fines ... output will definitely decrease," he said.

According to Chinese financial scholar He Jiangbing, China currently gets 74 percent of its power from thermal generation, 11 percent from hydropower, and five percent from nuclear, wind, and other sources.