China Bans Australian Coal Imports... Power Shortage

Emergency Power Usage Restrictions in Some Areas Including Zhaoshang, Changsha, and Hunan Province
China's Power Shortage Expected to Continue Until Next Year's Lunar New Year

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China, which has virtually banned imports of Australian coal, is experiencing a power shortage.

The diplomatic conflict between China and Australia, which began over the responsibility for the novel coronavirus infection (COVID-19), has expanded from agricultural products such as beef, barley, and wine to coal, resulting in a significant decrease in China's imports of Australian coal.

According to Chinese media including the state-run Xinhua News Agency on the 18th, power outages have frequently occurred in some regions of China such as Zhejiang Province, Jiangxi Province, and Hunan Province due to a sharp increase in power consumption during the winter season.

(Photo by AP Yonhap News)

In Zhejiang Province, concerned about blackouts, an emergency measure was issued allowing the use of electric heaters only when office temperatures fall below 3℃.

Hunan Province decided to stagger power usage times, focusing on industrial complexes with high power consumption. First, the use of electric heaters was restricted from 9 a.m. to 5 p.m. They also recommended operating factories during the evening hours when power usage is relatively low.

Regarding the power shortage situation, Xinhua News Agency cited an announcement from the National Development and Reform Commission, which oversees China's economic development plans, explaining that power consumption increased due to the rapid recovery of China's industrial production after COVID-19.

It also reported that a sudden drop in temperature caused a surge in electricity use for heating, leading to a temporary power shortage, and that this phenomenon could continue until next year's Lunar New Year. Additionally, the suspension of operations at some coal-fired power plants also affected power supply.

China is known to mainly produce and supply electricity through coal-fired power generation. Some speculate that China's power shortage is a side effect of the restrictions on Australian coal imports.

The Global Times reported on the 13th that the National Development and Reform Commission permitted all power plants to import coal without restrictions except for Australian coal in order to stabilize coal prices. This effectively means a ban on Australian coal imports.

Shortly after this announcement, the Russian state-run TASS news agency reported that Elga Coal Company, a thermal coal mining company, decided to establish a joint venture with a Chinese shipping company. This indicates that China is partnering with Russia to diversify its coal imports. It is reported that China's current coal stockpile is sufficient for 21 days.

According to the General Administration of Customs of China, coal imports in November amounted to 11.67 million tons, a 43.8% decrease compared to the previous year.

This content was produced with the assistance of AI translation services.