Power shortage disrupts life, production in China

 
0 CommentsPrint E-mail Xinhua, May 11, 2011
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All the electric gates of modern apartment buildings in Kaifu District of Changsha City are kept wide open. Once closed, they wouldn't open again because of an ongoing power shortage.

Such scenarios are not uncommon in central China's Hunan where people's lives are being disrupted as the province rations power amid a serious power shortage.

Hunan will continue to cut power in cities across the province till early June.

A spokesman for the Hunan Provincial Commission of Economy and Information Technology says it's impossible to calculate the number of people affected by the power cuts.

"Residential buildings are one of six priority areas. Others include hospitals, banks and infrastructure, none of which are receiving enough power," the spokesman said.

The power shortage plaguing eastern, central and southern China may be hampering the country's economic performance.

China's industrial value-added output rose 13.4 percent year on year in April, down from March's 14.8-percent growth, according to the National Bureau of Statistics (NBS) on Wednesday.

Analysts blame the slow down partly on the power shortages that have plagued many industry-heavy provinces such as Zhejiang, Guangdong and Jiangsu since mid-April.

"In the short term, power shortages and cuts in some provinces will slow growth of some heavy industries, including cement, non-ferrous metal, iron and steel, and chemical sectors in those areas," Wang Tao, an economist with UBS Securities, forecasts.

However, Wang says the risk of a severe nationwide power shortage causing a sharp economic slowdown is slim, even though the drought shows little sign of dissipating, prices of coal remain high and electricity demand is yet to reach its summer peak.

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