Due to major power shortages in China, some factories have had to temporarily stop production. This also includes a number of suppliers of Apple and Tesla. While the larger production complexes are reportedly still up and running, this could have implications for the global supply chain.
Some Chinese factories have been forced to stop production for a few days due to national power shortages, including suppliers of Apple and Tesla products. That while it is peak season for electronic goods, Reuters writes. The country can no longer keep up with the high demand for electricity due to rising coal prices and stricter regulations to drastically reduce emissions in China.
However, according to Reuters, the power shortages have had only “a little impact” on the factories of Foxconn, one of the largest Apple and Tesla suppliers in China. The factories of Pegatron, one of Apple’s main partners in the production of iPhones, are also said to have been given “preferred access” to energy to continue production, according to Bloomberg sources.
However, the smaller companies, such as Eson Precision and Concraft Holding, have reported that they will stop production for a few days, according to Reuters. That could have global implications for the supply chain, as Apple and Tesla products also need to be shipped to Europe. Whether production can be resumed at full capacity in a few days remains to be seen.
China is said to have consumed a lot of energy due to bitcoin mining, among other things. According to researchers, without political intervention, by 2024, the electricity consumption of China’s mining activities would exceed Italy’s total electricity consumption. In June, the Chinese government decided to ban cryptocurrency mining. Last week, all crypto transactions were also made illegal.