A heatwave-induced power crisis is spreading across southwestern China, shuttering factories and worsening by the day, according to Nikkei Asia.
The latest news from China is the Chongqing municipal government ordered factories, including Japanese-owned ones, to suspend production through Aug. 24 to conserve power as demand surges because of extreme heat.
Chongqing is following its neighbor, Sichuan Province, which announced earlier this week that slumping hydropower generation has led to the closure of some of the world’s largest multinationals, including Toyota Motor Corp. and Contemporary Amperex Technology Co.
Moody’s Vice President and Senior Credit Officer Boris Kan pointed out the heatwave will only boost China’s reliance on coal-fired generation.