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China GDP engine Guangdong hit with perfect storm of power grid uncertainty

Drought, coal prices and shifting demand blamed for forcing cuts to factory electricity

Power lines extend over Guangzhou. An electricity shortage in the southern Chinese province of Guangdong has multiple causes. (Photo by Yusuke Hinata)

GUANGZHOU -- Scarce rain, rising coal prices and rapid inland industrialization have together left the southern Chinese manufacturing hub of Guangdong Province in the throes of an electricity shortage that casts uncertainty over about 10% of the country's economic output.

The effects are being felt on factory floors and in managers' offices, with one Japanese-owned metal parts supplier sent scrambling to rearrange work schedules after local authorities ordered power cuts.

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