China is facing a national economic crisis related to a large percentage of its real estate underwater and now the government is issuing nationwide power cuts which slow its already fragile economy.
We’ve reported already on how the China economy is facing a real estate crisis highlighted by the Evergrande bankruptcy.
Now the Asia Times reports:
Goldman Sachs Tuesday lowered its annual economic growth forecast for China as nationwide power cuts hit millions of homes and halted production at factories, including some supplying Apple and Tesla.
At least 17 provinces and regions – accounting for 66% of the country’s gross domestic product – have announced some form of power cuts in recent months, mainly targeting heavy industrial users, according to Bloomberg Intelligence.
Nearly 60% of the Chinese economy is powered by coal, but supply has been disrupted by the pandemic, put under pressure by tough emissions targets and squeezed by a drop in coal imports amid a trade tiff with Australia.
China’s economy is slowing and its real estate is underwater. This is not good as the world economy’s recovery from the China coronavirus stalls.
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