What Does China's Dual Control of Energy Consumption Policy Mean to Industrial Enterprises?

Date: 17,11,2021

Author: Aosion

This is Ray, today I’d like to share the news that is closely related to international trade, let's go!

You may have heard that the Chinese government has recently introduced a dual control policy----"Dual Control of Energy Consumption", which refers to both controlling the intensity of energy consumption (also known as energy consumption per unit of GDP, the efficiency of energy utilization in creating economic output), and controlling the total energy consumption.

We all know that 2021 is the year when climate change poses a huge threat. Due to global warming, China, Germany, and India have all suffered severe floods. The mitigation of global warming is urgent.
The Chinese government has made great efforts in this field. Plans to achieve "Carbon Peak" by 2030 and achieve "Carbon Neutrality" by 2060. Makes its due contribution to global climate governance.

Of course, in the implementation of the policy, there will be some industrial enterprises affected.

China is a big energy consumer, as about 70% of China's electricity comes from Thermal Power Generation (coal, oil, natural gas)
The coal-based energy structure is in urgent need of adjustment so that restricting the use of electricity has become the first choice. In recent months, the government has imposed power restrictions on factories and enterprises without affecting residents’ lives. Many enterprises in Guangdong, Jiangsu, Tianjin, Zhejiang, and other provinces have reduced their production capacity. As far as specific industries, the most affected industries include but are not limited to Aluminum; Cement; Chemical Fiber; Yellow Phosphorus; Aluminum; Silicon; Steel; building materials, and other industries. The main characteristics of these industries are high energy consumption + high carbon emissions. The implementation of measures including Cutting overcapacity; Staggered peak production; Limiting time & electricity; Reducing power concessions, etc.

For the implementation of the "dual control of energy consumption" policy, coupled with the international shipping costs and raw material "oil" prices increasing sharply in recent years, the cost has also increased.

For Aosion, we have a complete industrial chain; efficient production system; adequate cash reserves. The impact of restrictions on raw materials is within our controllable range. When we receive the temporary urgent orders from customers, the goods were finished within 25 days in the past several months.

In addition, due to the global economic downturn caused by COVID-19, the loss of exchange rates, and so on. As a manufacturer, we have always insisted on maintaining the best price for our customers while ensuring that we are not affected.

Believe we could work together to get through this difficult time.
Tomorrow will be better.


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