Energy crisis in China | A Real issue for world
China is facing a huge energy crisis due to a shortage of coil. According to Forbes, more than 80% of energy depends on fossil fuels. Now here we understand how the energy crisis in China is a real issue for the world. The world economy is very well interconnected, China still is a major manufacture hub for the world. According to a report carried in 2019, annual energy consumption distribution are:-
Natural Gas- 24%
Nuclear Energy- 4%
We can see that most of the energy is consumed from fossil and fuels. It will take time to shift to renewable energy. The fuel prices are going up in the global market. China is buying coal at a price offered by respective countries also asked people to use it only if needed. China is importing coal from central Asia countries and also asked the bank to make separate funds for coal import.
What leads to the energy crisis in China?
Covid lead low productions of coal, the manufacturer are unsure of the situation and slowed coal production. Coal is not only used for the production of electricity but also for steel, cement, and other things as well. Demands remain almost the same and supply decreases which leads to crisis. The semiconductor shortage is already leading to inflation in the automobile sector and chip shortage in the electronic device shortage.
Out of 31 provinces in china 20 provinces facing power issues. Most individuals and families are facing power problems in China. Australia is a large coal-producing country however, will China buys from there or not is a question. Australian imports were cut by china last year. Production of most goods is stooped in China.
How does the world get affected by the energy crisis in China?
China is the leading economy and world manufacturing hub right now. China exports lots of things to various parts of the world. Asian countries are pretty much dependent on Chinese goods. Electronics goods are manufactured majorly in China. India also is in a similar situation. Two big nations having energy shortage lead issue for the world economy.
Shortage of energy leads to a shortage of productions goods that depends on energy. Also, winter is coming and if the energy crisis will remain the same there might be a big problem for various countries. The USA will not be impacted by this crisis much as it has enough oil production and reserve. The countries that depend on goods from China may face issues or a price hike for goods, the energy crisis will be 5-8 months long.
Opportunity for Nepal
Nepal is rich in water resources and if used it can produce a large amount of electricity, It can export its electricity to these nations however, resources are less for production and distribution. Nepal needs huge investments to produce and export surplus electricity however, Nepal alone can not able to fulfill the demand.
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