Mid-Power Shortage Dampens Domestic Demand During National Day Holiday... Dual Circulation Policy 'Shaken'

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[Asia Economy Beijing=Special Correspondent Jo Young-shin] Concerns are emerging that the Chinese leadership's plan to boost domestic consumption during the National Day holiday period (October 1-7) may face setbacks. The power shortage caused by coal scarcity is pointed out as a factor that could lead to a decrease in travelers and consumer spending.

[Image source=Yonhap News]

The Chinese leadership announced at the beginning of the year that it would drive economic growth through the dual circulation policy (domestic demand-centered growth), but domestic consumption has struggled to recover due to the resurgence of COVID-19 and floods. On top of this, an unexpected challenge of power shortages has appeared.

The state-run Global Times, citing reservation data from Chinese online travel platforms, forecasted on the 30th that 650 million people will travel during this year's National Day holiday period. This number is higher than last year and corresponds to 80% of the 2019 figure before COVID-19.

An official from the Chinese Ministry of Culture and Tourism said, "As COVID-19 spread in some regions in July and August, summer travel demand was not fully resolved," adding, "Major tourist destinations are preparing to welcome National Day holiday tourists by offering preferential measures to attract visitors."

The media outlet gave a positive outlook on domestic consumption during the National Day holiday but noted that the power shortage is likely to act as an unexpected variable.

[Image source=Yonhap News]

First, some provincial authorities in Guangdong Province, Heilongjiang Province, Anhui Province, and others facing power shortages have announced plans to manage electricity during the National Day holiday period. Shenzhen City in Guangdong Province decided to suspend laser shows during the holiday.

In Anhui Province, city landscape lighting will be turned off, and in Heilongjiang Province (Harbin), commercial districts except for some areas will close operations by 4 p.m.

Online media Pengpai reported that electricity consumption in 22 out of 31 Chinese provinces increased by about 20% compared to last year, and several provinces including Liaoning, Jilin, Jiangsu, and Zhejiang are sequentially restricting electricity usage. The power shortage occurring nationwide inevitably affects domestic consumption during the National Day holiday.

Meanwhile, the National Development and Reform Commission (NDRC) announced the day before that it will implement policies such as diversifying coal imports, signing long-term coal contracts, promoting reasonable electricity consumption, adjusting energy pricing (electricity rate increases), and controlling unnecessary power usage to ensure stable energy supply.

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