BEIJING: China is failing to produce enough electricity to power its industries, keep its street lights glowing, traffic lights working and households functional, tfiglobalnews.com has said.

What we are looking at is the systematic breakdown of the world’s second-largest economy over something as basic as electricity and power generation, it said.

China’s power crisis is escalating with every passing day, it said, adding that now it is likely to trigger a revolution against the Chinese Communist Party (CCP) even as China faces a lingering threat of an economic contraction due to a sudden halt in industrial activity.

China fails to meet its energy goals

China, which is dependent on thermal power for fulfilling over half of its energy demand, is reeling under a tight supply of thermal coal, the report said.

It added that President Xi Jinping has banned shipments of Australian coal and Beijing cannot find an alternative for the fossil fuel coming from Australia.

The situation is so bad in China that only 10 out of 30 mainland regions have managed to achieve their energy goals in the first half of the year, according to the report.

Chinese industries shutting down

Morgan Stanley wrote a note to its clients on Monday, in which it stated that steel, aluminium and cement industries in China have been hit by the power outages and had to curb their output, according to the report.

There has been a 7 percent reduction in China’s aluminium production capacity, while 29 per cent of its cement production capacity has been hit by the ongoing power crisis in China, it said.

Morgan Stanley also said, “Production cuts, if prolonged, could knock 1 (percentage point) off GDP growth in Q4, led by materials production.”

(tfiglobalnews.com)