China is currently hit by severe electricity shortages. Factories are shut down and residents are urged to reduce their consumption.

China faces severe power shortages, forcing factories to shut down production. Households are encouraged to reduce their electricity consumption. The electricity supply problems are the result of growing demand for electricity combined with rising coal and gas prices and Beijing’s stricter regulations to reduce CO2 emissions.

The problems particularly affect the country’s major processing industries such as aluminum smelters, textile manufacturers and soybean processors.

Apple and Tesla suppliers have reportedly stopped production at some of their facilities in China. This would not apply to Foxconn’s factories in Longhua, Guanlan, Taiyuan and Zhengzhou, the world’s largest complexes for iPhone production. A number of small businesses are also having to limit or shut down their operations. All of this risks disrupting supply chains, which can also affect large companies.

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