September "Power Restriction Order"

　　Starting from September, nine provinces including Jiangsu, Guangdong, Guangxi, Shaanxi, and Yunnan reached Level 1 energy consumption warnings; ten provinces including Henan, Zhejiang, Liaoning, and Jiangxi reached Level 2 warnings. To achieve the goal of "dual control of energy consumption," 16 provinces nationwide have implemented "power restriction" measures. For example, Ningxia directly issued a 30-day production suspension and restriction order to high energy-consuming enterprises. With the arrival of the "power restriction order," many companies have also announced temporary production halts. For instance, the Humen area imposed a "three days on, four days off" measure on manufacturing and adopted staggered production. More than 90 large electronics factories in Houjie Town, Dongguan, are also under control, and this wave of power restrictions is expected to last until October.

(Image source: Tuchong Creative)

　　The Yunnan region has also imposed power and production restrictions on the electrolytic aluminum industry, with production from September to December not exceeding that of August; steel plants in Shandong and Jiangsu have also experienced price increases due to power and production restrictions. In the Northeast, besides industrial electricity use being affected, residential electricity is also very tight. The Suzhou industrial park has also announced production halts due to power supply shortages, but production is expected to resume gradually starting in October. It is evident that this "power restriction order" will not last too long; companies are expected to resume work starting in October, but the exact timing depends on arrangements. Different industries have varying energy consumption levels, so the control intensity differs accordingly. However, industries such as textiles, chemicals, non-ferrous metals, and steel will all be affected. Besides the surge in coal prices and tight power supply, this "power restriction order" is also aimed at achieving "carbon peak" by 2030 and "carbon neutrality" by 2060.

October "Work Suspension Order" Arrives

　　Every year starting in October, the "work suspension order" is implemented mainly to address the "smog" caused during autumn and winter. Northern winters are prone to smog, which not only damages the human respiratory system but also affects crop growth by weakening photosynthesis and respiration, hindering normal plant metabolism and thus crop development. To improve the environment and reduce smog formation, the government issues the "work suspension order" starting every October, lasting until March of the following year, limiting production in highly polluting enterprises to strengthen environmental protection.

　　Of course, the so-called "work suspension order" does not mean a complete production halt but involves staggered production or production limits for highly polluting enterprises. For those polluting companies that refuse to comply or rectify, the government will permanently shut them down to reduce industrial emissions and coal pollution, thereby addressing the smog problem.

　　Recently, the Ministry of Ecology and Environment issued a letter soliciting opinions on the "Comprehensive Air Pollution Control Plan for Key Areas in Autumn and Winter 2021-2022 (Draft for Comments)." This "work suspension" will affect 65 cities across six provinces, adding 26 cities compared to last year, including Beijing-Tianjin-Hebei, Shandong, Shanxi, Shaanxi, and Henan. The period is from October 1, 2021, to March 31, 2022.

　　Which industries will be affected?

　　1 - Construction Industry

　　China's construction industry employs over 40 million people, most of whom are migrant workers. However, construction is also a major source of pollution, easily causing dust and noise pollution during production. If it involves house decoration, harmful gases like formaldehyde can also harm health. Therefore, this industry will face production limits or staggered production, inevitably affecting the income of migrant workers.

(Image source: Internet)

　　2 - Steel and Building Materials Industry

　　Industrial production cannot do without steel and other building materials. However, metal smelting and processing inevitably cause pollution. The chemical industry is the lifeline of the industrial economy and cannot adopt a "one-size-fits-all" shutdown. Therefore, the only option is to implement staggered production and production limits.

　　3 - Coal Industry

　　Coal prices have risen continuously this year, causing greater losses for power companies, which can only choose to limit work and production, with the shutdown scope expanding. Of course, coal mining and coal burning themselves cause environmental pollution and are the main causes of winter smog. Therefore, the government will inevitably strengthen restrictions on the coal industry.

　　4 - Mining Industry

　　According to the Ministry of Environmental Protection's list of heavily polluting industries, mining is included. Sand and gravel, as the most used construction raw materials, are mostly open-pit mined, causing significant environmental pollution, especially dust pollution, which severely affects traffic. Additionally, mining contains many heavy metal particles and emits various elements that impact human health and safety and easily cause smog. Mining will also be a major industry subject to "work suspension and production limits."

(Image source: Internet)

　　5 - Chemical Industry

　　The chemical industry includes basic chemicals, chemical fibers, etc. Recently, Zhejiang has limited production in printing and dyeing, chemical fiber, and textile industries. Agricultural chemical production such as pesticides, fertilizers, and agricultural films, as well as cosmetics production, are all chemical industries and will also face restrictions. Migrant workers in these industries may have their work affected due to production capacity limits, resulting in shorter working hours and reduced wages. Those wanting to earn more will need to find new jobs, so everyone should plan ahead.

　　(Source: Internet)