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Chinese factories make the power switch to diesel, amid Australia coal ban

蘋果日報 2020/12/20 19:00


Recent electricity restrictions amid the latest trade spat between China and Australia have sparked a surge in demand for diesel generators in some parts of the mainland, as factories compete for energy resources in light of power outages.
Factories in Zhejiang province’s Yiwu City appeared to be the latest victims, according to Chinese media reports. Factories were divided into four categories, where large enterprises belonging to the top categories were allowed to continue operations as usual. Those belonging to the second and third classes could only operate in restricted hours, while factories in the bottom tier were forced to shut down their operations.
But these factories were not told that they had to restrict their operations because of power outages, but instead informed by local authorities “to save energy and reduce emissions,” according to the manager of a plastic factory.
The plastic factory was told to operate for two days and close for two days, said the manager, and those violating the order would be fined and have its power cut-off until New Year’s Day.
However, many factories were still operating in secret to deliver orders by the year’s end. Some factories in Yiwu said they had received calls from concerned clients after the news about power restrictions began to spread, saying that they would have to switch to other factories if they could not deliver orders.
Some factories have bought or rented diesel generators as a temporary solution. One diesel generator seller said it had sold 13 machines in just three days, with many inquiries coming from factories in Yiwu. One company that leases diesel generators in Jinhua, another city in Zhejiang province, said the monthly rental for one machine has gone up to 8,000 yuan (US$1,224), an increase of 2,000 yuan from last year. A total of 50 machines have been rented out, the company said, mostly to factories in Yiwu. The cost for fuel per day was estimated at 1,000 yuan.
Although diesel generators could be a temporary solution, many factories were concerned about the environmental problems they could cause, such as the noise pollution and toxic emissions. They were worried they would receive complaints from neighboring residents.
Such electricity restrictions were not observed in the Pearl River Delta in Guangdong, mainland media reported. Some factories said they were not affected, and they had to work overtime because of the prosperous business.
China banned the import of coal from Australia last week as the relations between the two countries continue to deteriorate.
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