Caixin
Aug 18, 2022 08:33 PM
BUSINESS

Southwest China Power Cuts Spread to Households as Analysts Warn of Economic Impact

On Aug. 17, the subway system in Sichuan's capital turned off some lights in stations and turned down their air conditioning. Photo: VCG
On Aug. 17, the subway system in Sichuan's capital turned off some lights in stations and turned down their air conditioning. Photo: VCG

Power cuts in Southwest China’s Sichuan province have spread to households, despite local officials’ efforts to spare them by ordering factories to suspend their operations.

A monthslong heat wave in the region has created a double whammy — drying up key hydropower reservoirs and spiking air conditioning demand — which has stoked concerns among analysts that it would temporarily drag on industrial production and GDP growth.

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