Oct 7, 2021 - Economy & Business
Fallout from China's energy crisis
China’s energy crisis shows no signs of slowing, and it’s poised to impact the flow of goods that the nation sends stateside.
Why it matters: Supply chain disruptions are a huge part of what’s holding back the world’s economic growth as it recovers from the pandemic lockdown era. Electricity blackouts in China spawned by a power shortage could make that worse.
Details: Key suppliers to tech giants like Apple, Tesla, Microsoft, HP and Dell have been forced to cease or reduce operations, the FT reports.
- Suppliers to U.S.-based makers of consumer products like water bottles and backpacks also face caps on their power usage, the WSJ writes.
- Food costs will probably rise, too. Agricultural processing plants have had to go dark, according to Bloomberg.
The bottom line: Global markets may be in for a further supply shock, which could add to inflation, Nomura chief China economist Ting Lu wrote in a research note, according to the WSJ report.