China's extreme electricity shortage to have ripple effect on other major global economies
And china's extreme electricity shortage will not hurt its own growth, but it can also have a ripple effect on other major economies as well as it is the world's largest exporter. Also and let's say, the knock-on impact to supply chains could crimp a global economy that is struggling to emerge from the pandemic.The shipping industry globally is already facing congested supply lines that are delaying deliveries of clothes And toys for the coming holiday season. Beijing has been scouring for power supplies as it tries to stabilize the situation. Impact on the global economy will depend on how quickly those efforts bear fruit. Many Chinese factories reduced production for this week's golden week. Holiday and economists are closely watching whether power shortages will return as they ramp. Up again, the hit is hurting everyone from Toyota to Australian sheep farmers, and now china's harvest season could also be impacted by an energy crisis that can lead to higher grocery bills. Manufacturers facing higher costs are also facing dilemmas, whether to absorb higher costs or pass them to consumers. Analysts also point out: some industries are under pressure and the damage they are seeing could quickly fan out to other sectors. The food supply chain is also at risk, as the energy crisis makes harvest Season more challenging. Global food prices have already jumped to a decade high and worries are mounting that situation will worsen as china struggles to handle crops from corn to soy to peanuts and cotton.