China is trying to centrally plan electric prices (hold at old level) when coal is up 65%. This kind
of thing never works out well. So now they are running out
of electricity and so shutting down aluminum manufacturing (uses lots
of electricity) etc.
I think this is why they chased all the Bitcoin Miners out (it uses lots
of electricity). But it was making lots
of money and now that money is not made in China.
https://finance.yahoo.com/news/china-po ... 00280.html
China had many cities that were special economic zones. These were capitalism. It was doing so well the whole country sort
of went with it. But now CCP is reasserting their control over the economy. It will not go well.
"Yunnan Aluminum Co., a $9 billion producer
of the metal used in everything from cars to soda cans, has curtailed output due to pressure from Beijing. The shock is also being felt in China’s giant food sector. Soybean crushers, which process the crop into edible oils and animal feed, were ordered to shut this week in the city
of Tianjin.
According to Nikkei, suppliers to Apple Inc. and Tesla Inc. halted production at some
of their sites in China on Sunday. Foxconn’s facilities in Longhua, Guanlan, Taiyuan and Zhengzhou -- the world’s largest iPhone manufacturing complex -- remained unaffected by the power-supply restrictions, the report said.
A number
of smaller companies are also starting to inform the stock exchange they’ve been ordered to curb or halt activity. While they may be overlooked by major foreign investors that don’t cover these firms, the end result could be a shortage
of everything from textiles to electronics components that could snarl supply chains and eat into the profits
of a host
of multinational companies."
If China does not have power for Apple and Tesla then companies will soon be leaving China faster than they have been so far. Central planning is not a win.
