Times: due to the energy crisis in China, there may be a shortage of goods work or switch to a two-day work week, reducing production. Because of this, further interruptions in the supply of goods and an increase in prices for them may occur. Experts from The Times cite a new reason for the rise in prices.
Already in 16 provinces of the PRC, electricity consumption rationing has been introduced. As a result, it takes twice as long to produce goods. Factories producing raw materials and supplies face challenges. This leads to a shortage in other enterprises that need materials to produce finished goods. “By the end of November, everything will be very difficult with this,” says John Muelley, an expert at the Hong Kong recruiting company Robert Walters.
According to analysts, interruptions in the supply of popular products from China will continue for most of 2022, this will lead to an increase in the price of goods by 10-12 percent, as well as to a reduction in production.
Earlier, the world economy was promised stagnation due to China. The debt problems facing the real estate sector could turn into years of stagnation. And it will affect not only the domestic economy of the PRC, but also the world as a whole, according to economist and researcher at the China Center at Oxford University George Magnus.