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

20210620N Guangzhou power lines

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

YUSUKE HINATA, Nikkei staff writer

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.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.