Inflation or Black out Summer: Beijing to Choose
State Grid Corporation of China has apprehended shortage of more than 30 to 40 giga watts during the present summer which means a very awkward experience for Chinese economy when it expecting ten percent growth for the running year.
Drought of unprecedented kind, over large area of central provinces and over some parts of the southern provinces, has severely hit the hydropower potential of China. Hydropower has a great role in this country, especially each year between May and October, this sector provides twenty percent of the national fuel consumption. Fuel producing capacity of this country is not, otherwise, insufficient to meet the demand for its overall industrial activities and for maintaining grandeur of the city-life. It seems to have suddenly failed because of the nature’s fury noticed in the form of scarce rainfall.
Irregularity in the electric sector has, on the other hand, opened its terrible face, because the power companies have necessity to raise the price which the Chinese government is not prepared to approve. The manufacturing industries are allowed to swallow power at low cost.
The government of China has taken a few steps to face the crisis. It has stopped exports of diesel and has begun imports of gas fuel to help the severely affected areas. Restrictions have been imposed in consumption of power in cities like Shanghai and others. Steel and aluminum industries have been approached to share the hit of electricity shortage.
Experts and analysts have suggested that adjustment in the power tariff should be accepted as an alternative measure. True again it is that inflation is invited if consumers are asked to pay more, that is, if the tariff for power is raised. The central bank is aware of the situation and it has started to take measures so that inflation can be checked.
China is, at present, between two of the undesirable options which are inflation and acute power shortage. Choice before China is to select between real aspiration of its people to whom living is more important than living with luxury and that of its leaders for whom ambition to turn their nation into a superpower is the immediate mission.