China power cuts

[samuel5]

Anyone else who has suppliers in China having production delayed from the power shortage over there?

Some of our suppliers say the government has restricted them to working just 3 days per week to ration the power from the coal shortage!

Together with the extortionate container shipping prices, I think it’s time we looked for other alternatives to China, but where else do we look!

 

[WaveJumper]

Interesting actually as we grapple with our own issues in the UK as you say big problems in China I did see this a few days ago

https://www.theguardian.com/world/2...s-and-factories-prompting-global-supply-fears

 

[OMGVape]

What I’ve heard this week, Chinese government is telling factories to raise prices, and if they don’t the electricity is cut off.

 

[MOIC]

Some of our suppliers say the government has restricted them to working just 3 days per week to ration the power from the coal shortage!

Yep, it's correct due to rising coal prices and will continue until CNY at least.

China tried cutting their coal energy output earlier this year and it backfired on them as many in the north of the country suffered no electricity for a few days, some for 2 weeks, so they reinstated the coal energy output to full capacity.

However, due to current coal prices, China has reduced it's coal energy output to 80% of it's potential, but they can increase the output, if they wanted to, at the flick of a switch.

Looks like full steam ahead (excuse the pun) for nuclear power, which will take some time.

I can't help feeling that the 'order' to cut factory production to 3 days a week is somehow connected to many customers reducing their orders due to current shipping rates.

 

[The Byre]

China tried cutting their coal energy output earlier this year and it backfired on them as many in the north of the country suffered no electricity for a few days, some for 2 weeks, so they reinstated the coal energy output to full capacity.

Is there some sort of political stupidity pandemic going around, affecting politicians everywhere? It certainly is beginning to look like it!

 

[WaveJumper]

Apparently its sweeping the world another pandemic called politiciandumbitus and whatever you do DON'T PANIC even though there appears to be no known cure

 

[MOIC]

Is there some sort of political stupidity pandemic going around, affecting politicians everywhere? It certainly is beginning to look like it!

China doesn't need a pandemic to affect their way of thinking . . . . . .

 

[InsuranceBroker]

Is there some sort of political stupidity pandemic going around, affecting politicians everywhere? It certainly is beginning to look like it!

Yes!

 

[japancool]

Economics matters less than the well-being of the Party.

 

[Larry Fong]

Check about Vietnam or other Asian countries.

 

[Washington]

I work with a China factory who can generate its own power so for short term power cuts it is not an issue, however many of the component supply base it uses do not generate their own power so once component stocks are exhausted they will be in the same position as those without generators

Vietnam and other Asian countries have their own issues and unlikely to accept new business easy. Many SE Asia countries are just reopening after Covid and the West will have continued to take orders over that period meaning factories have bloated order books. I know one factory in Vietnam who told me they will not consider taking on new customers until the middle of next year so they can support their existing customer base

This is not a quick fix, I think loyalty with your existing supply chain is often the best policy, it will turn a good relationship into a strong bond. The factories have not caused the pandemic or the shipping issues, and they feel the pain as much as we do

 

[The Byre]

China’s southern province of Guangdong is eliminating government fixed electricity prices for industrial and commercial users, according to Bloomberg. They will now have to pay market prices.

 

[Deleted member 59730]

Together with the extortionate container shipping prices, I think it’s time we looked for other alternatives to China, but where else do we look!

Closer to home. Either the UK or the EU.

Advantages are :- Avoid damaging the climate by shipping so far
Work with people you can talk to in your time zone.
Much faster delivery times
You keep money in the economy of your customers. (How many people in China buy from you?}

 

[gpietersz]

Some people in the UK are exporting to China: https://commonslibrary.parliament.uk/research-briefings/cbp-7379/

Yes, there is a big trade deficit, but there is also a significant amount of exports.