Page 196 - 2023 White Paper on the Business Environment in China
P. 196
3 White Paper on the Business Environment in China
outside the Xinjiang Uygur autonomous region governments, then in full drive to kick off carbon
since 1961 when nationwide observation statistics emissions, also rationed power usage in an
began. Neighboring Sichuan province also logged effort to meet yearly targets. The power outage
a temperature of 43.8 °C in its Xingwen county, a contributed to a slowdown in GDP growth in the
provincial record. The lingering heat wave caused third quarter of 2021 since power rationings in
energy demand to surge and dried up rivers and parts of China had impacted “normal production.”
reservoirs, which has worsened the situation as Many of the country’s major manufacturing areas
the region relies on hydroelectricity to generate 80 such as Guangdong in southern China were
percent of its power. Over 33 districts and counties affected by the power cuts (Tan).
in Chongqing experienced varying degrees of
drought and at least 51 rivers and 24 reservoirs 2022 Renewable Energy
have dried up. To meet increasing public demand
for power during the heat wave, the Sichuan As the world's largest industrial and
Economic and Information Department and the manufacturing base, it's no secret that energy
State Grid Sichuan Electric Power Co jointly issued resources are crucial for China. Over the past four
an emergency notice limiting power consumption decades, the country's economy has grown rapidly,
at companies. Chongqing enacted similar measures lifting hundreds of millions of people out of poverty.
to ensure the domestic power supply. Chongqing It has also become outstanding in many global
Astronautic Bashan Motorcycle Manufacturing Co industries, thereby boosting both its consumption
received a power rationing notice and gave its 400 and demand for energy and exceeding that of
employees leave to escape the heat (Ten et. al.). any other country. Given the pressing impact of
climate change, countries across the world need
The industrial sector consumes over 60 percent to act quickly and make their own efforts to help
of power in China, while residents only consume mitigate the impact of climate change and ensure
less than 15 percent. Sichuan and nearby a sustainable development model. China thereby
Chongqing Municipality are major manufacturing has to deal with the challenge of not only acquiring
bases in China. Though this round of power ever-increasing amounts of energy in order to
restrictions would inevitably impact the production continue economic growth but also making sure
of regional firms in the short term, the long-term that its energy stores increasingly come from
impact was negligible given that the restrictions renewable methods that are sustainable for the
were only briefly implemented. However, this environment. Chinese authorities have introduced
round of electricity shortage offered a wake-up a raft of measures to boost energy efficiency and
call for certain regions to improve their energy reduce carbon emissions. This includes a number
structures and for the nation to improve its energy of measures to facilitate green growth, including
utilization rate as extreme weather becomes finding ways to reduce the consumption of water
increasingly frequent (GT, Power Shortage). needed to run factories by at least 16 percent
from 2020 levels by the end of 2025. In doing
Since China had a nationwide power crunch this, China has promoted over 20,000 green
in 2021, the concern rose that it might happen products and 4,000 types of equipment for energy
again in 2022. The difference was that the 2022 and water conservation and comprehensive
crisis result from two factors: abnormally hot resource utilization since 2011. In the process,
weather and a lack of rainfall. The 2022 heatwave a growing number of companies in low-carbon
also persisted longer — for 64 days, and was energy technologies have been established,
the longest since 1961. Residential power usage providing more new jobs. Yet on its own, this is
in July 2022 was 26.8 percent higher compared not enough. China continues its comprehensive
with the same time in 2021. That year, power energy transition and advocates putting even more
generation plants cut back on production due to resources toward renewable energy development
high coal costs which they could not offset with and conservation. This comes in tandem with
fixed electricity sales. Plants were not able to lift the rapid rise of the electric vehicle (EV) industry.
power tariffs charged to users as they were set China has become "the center" of the world when
at a fixed rate by Chinese authorities. Provincial
196
outside the Xinjiang Uygur autonomous region governments, then in full drive to kick off carbon
since 1961 when nationwide observation statistics emissions, also rationed power usage in an
began. Neighboring Sichuan province also logged effort to meet yearly targets. The power outage
a temperature of 43.8 °C in its Xingwen county, a contributed to a slowdown in GDP growth in the
provincial record. The lingering heat wave caused third quarter of 2021 since power rationings in
energy demand to surge and dried up rivers and parts of China had impacted “normal production.”
reservoirs, which has worsened the situation as Many of the country’s major manufacturing areas
the region relies on hydroelectricity to generate 80 such as Guangdong in southern China were
percent of its power. Over 33 districts and counties affected by the power cuts (Tan).
in Chongqing experienced varying degrees of
drought and at least 51 rivers and 24 reservoirs 2022 Renewable Energy
have dried up. To meet increasing public demand
for power during the heat wave, the Sichuan As the world's largest industrial and
Economic and Information Department and the manufacturing base, it's no secret that energy
State Grid Sichuan Electric Power Co jointly issued resources are crucial for China. Over the past four
an emergency notice limiting power consumption decades, the country's economy has grown rapidly,
at companies. Chongqing enacted similar measures lifting hundreds of millions of people out of poverty.
to ensure the domestic power supply. Chongqing It has also become outstanding in many global
Astronautic Bashan Motorcycle Manufacturing Co industries, thereby boosting both its consumption
received a power rationing notice and gave its 400 and demand for energy and exceeding that of
employees leave to escape the heat (Ten et. al.). any other country. Given the pressing impact of
climate change, countries across the world need
The industrial sector consumes over 60 percent to act quickly and make their own efforts to help
of power in China, while residents only consume mitigate the impact of climate change and ensure
less than 15 percent. Sichuan and nearby a sustainable development model. China thereby
Chongqing Municipality are major manufacturing has to deal with the challenge of not only acquiring
bases in China. Though this round of power ever-increasing amounts of energy in order to
restrictions would inevitably impact the production continue economic growth but also making sure
of regional firms in the short term, the long-term that its energy stores increasingly come from
impact was negligible given that the restrictions renewable methods that are sustainable for the
were only briefly implemented. However, this environment. Chinese authorities have introduced
round of electricity shortage offered a wake-up a raft of measures to boost energy efficiency and
call for certain regions to improve their energy reduce carbon emissions. This includes a number
structures and for the nation to improve its energy of measures to facilitate green growth, including
utilization rate as extreme weather becomes finding ways to reduce the consumption of water
increasingly frequent (GT, Power Shortage). needed to run factories by at least 16 percent
from 2020 levels by the end of 2025. In doing
Since China had a nationwide power crunch this, China has promoted over 20,000 green
in 2021, the concern rose that it might happen products and 4,000 types of equipment for energy
again in 2022. The difference was that the 2022 and water conservation and comprehensive
crisis result from two factors: abnormally hot resource utilization since 2011. In the process,
weather and a lack of rainfall. The 2022 heatwave a growing number of companies in low-carbon
also persisted longer — for 64 days, and was energy technologies have been established,
the longest since 1961. Residential power usage providing more new jobs. Yet on its own, this is
in July 2022 was 26.8 percent higher compared not enough. China continues its comprehensive
with the same time in 2021. That year, power energy transition and advocates putting even more
generation plants cut back on production due to resources toward renewable energy development
high coal costs which they could not offset with and conservation. This comes in tandem with
fixed electricity sales. Plants were not able to lift the rapid rise of the electric vehicle (EV) industry.
power tariffs charged to users as they were set China has become "the center" of the world when
at a fixed rate by Chinese authorities. Provincial
196
