China’s southern province of Guangdong, which is the country’s main manufacturing hub, has been left in the throes of an electricity shortage following scarce rain, rising coal prices and rapid inland industrialisation, casting uncertainty over 10 per cent of the country’s economic output.
According to Nikkei Asia, the effects are being felt on factory floors and in managers’ offices, with one Japanese-owned metal parts supplier sent scrambling to rearrange work schedules after local authorities ordered power cuts.
The biggest question emerging is how long the electricity shortage will last. A Honda Motor spokesperson said there was no impact on production at this time. But if the power constraints become chronic, they would risk rattling global supply chains.
