Drought and Power Shortages Worsen China's Supply Chain Snags
China's power crunch threatens supplies of everything from metals such as aluminum to automotive parts — as well as food commodities.
A severe drought and sweltering heat have led to low water levels and a drop in hydroelectric power generation in China in recent weeks, causing power shortages and forcing the government to ration electricity in some provinces.
China relies heavily on hydroelectric power to meet its electricity needs, with the source accounting for about 15% of its overall energy mix. In places like Sichuan, which has been the worst affected, the figure is as high as 80%.