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China’s power crisis
EconomyChina Economy

China’s energy crisis is easing, but Beijing says ‘results must be consolidated’ as winter months loom

  • Vice-Premier Han Zheng says efforts to secure power supply have achieved ‘initial results’, but coal production must continue to increase
  • Analysts say China faces challenges including lingering electricity shortages, rising energy consumption and limited generation capacity

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The world’s No 2 economy is slowly recovering from its most severe energy crunch in decades. Photo: AFP
Luna Sun

China’s efforts to secure energy supply have “achieved initial results”, but coal production must be ramped up to ensure power capacity ahead of the frigid winter months, the nation’s Vice-Premier Han Zheng has said.

The world’s No 2 economy is slowly recovering from its most severe energy crunch in decades and, although it is easing, analysts warn unseasonably cold weather could cause further coal shortages, with knock-on effects felt throughout the supply chain.

“Efforts to secure power supply have achieved initial results, coal production capacity has been released, prices are gradually back to normal,” Han said in a statement on Tuesday.

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“We must firmly establish a sense of the bigger picture and consolidate the results of maintaining supply and stable prices, to ensure that people stay warm through the winter.”

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China increases coal production to ensure winter supplies, easing energy shortage

China increases coal production to ensure winter supplies, easing energy shortage

Han also emphasised the government’s ongoing efforts to crack down on illicit activities that bid up coal prices, provide help to struggling power companies, and to develop contingency plans in preparation for extreme weather.

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