China’s restriction to manufacturers like Apple (NASDAQ: AAPL) and Tesla (NASDAQ:TSLA) amid stricter energy consumption policies seems like a foreshadowing to the current European energy crunch. After failing to secure an adequate amount of energy, China has had state media report its energy shortage to several provinces, including Guangdong Province, a central gathering of China’s population and businesses.
According to China Daily, a state-run media site, “many companies and factories have been ordered to operate for three days only, after having stopped production for four days, in the Pearl River delta, one of the world’s major production bases. Priority will be given to residential power consumers and the province’s service industries.”
Scrutiny has been placed on China’s ban on Australian goal imports, which was a result of a diplomatic spat over the origins of Covid-19. With China unable to source enough premium coals from other regions, the country is struggling to control energy prices for its residential and manufacturing facilities. The economic ramifications could be horrific with both China and Europe looking to face a bleak winter amid alarming energy concerns.