Perhaps you have noticed that the recent “dual control of energy consumption”policy of the Chinese government, which has a certain impact on the production capacity of some manufacturing companies, and the delivery of orders in some industries have to be delayed.
In addition, the China Ministry of Ecology and Environment has issued the draft of”2021-2022 Autumn and Winter Action Plan for Air Pollution Management” in September. During the autumn and winter this year (from 1st Oct 2021 to 31st March 2022), the production capacity in some industries may be further restricted.
THERE WILL HAVE TWO ASPECTS THAT MUST BE MOST AFFECTED BY THE “DUAL CONTROL OF ENERGY CONSUMPTION”POLICY OF THE CHINESE GOVERNMENT.
The first is Delivery Time. Most industries are already got the official notification from the government, they will be strictly limit the use of electricity, It means ration the power supply. So we can only work for 2-3 days per week to use the electricity, Other times will be electricity cut off by the government. It means, we can only work 10 days and have 20 days off every month. It will affect a lot on delivery time.
Secondly, In the meanwhile, some traders and factories already started to stock up goods. If so, It will make very few raw materials in the market for selling, which will make raw materials cost increasing again. The sources are limited and factories are strictly controlled for production capacity. The rising price of raw materials is an inevitable trend.
HOW TO DEAL WITH CHINA’S DUAL CONTROL OF ENERGY CONSUMPTION?
To mitigate the impacts of these restrictions, If you still have any plan to import from China, You need to consider and place the order as soon as possible to ensure that your order could be delivered on time.
Maybe we can import from Vietnam or other countries. But because most of the raw materials are sourced from China market, it needs at least one month more to prepare too.
So we still need to consider more for our later business.