Why China’s power crunch is such a big deal

 Why China’s power crunch is such a big deal

A general view shows the Wujing Coal-Electricity Power Station in Shanghai on September 28, 2021.

Hector Retamal | AFP | Getty Images

BEIJING — Local Chinese authorities have abruptly ordered power cuts at many factories in the last week, reflecting a system trying to react to a number of directives from Beijing, and macroeconomic developments.

While a few economists have cut their forecasts on China’s GDP growth as a result, others are still waiting to see the scale of the impact.

Here’s a broad overview on how the power crunch developed:

Coal supply drops, prices surge

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