Opinion: Why China’s Regional Power Crunch Won’t Become a National Problem

The persistent heat wave in China has not only led to a spike in electricity demand from residential and services sector consumers, but also curtailed the supply of hydropower. Due to the extreme weather, regions like Sichuan province have resorted to suspending industrial production, or rationing electricity for factories.

In my opinion, these measures will only have a limited impact on the country’s industrial production.