A drought in China hits industry
The ill effects of hot weather and drought
A city rivalry is heating up between Shanghai and Chengdu. The highest temperatures and lowest rainfall since records began 60 years ago have led to severe power shortages across the south-western province of Sichuan, where Chengdu is located, and in its neighbouring municipality, Chongqing. As a result Sichuan has been forced to curb energy use at thousands of industrial firms. That in turn has threatened the supply of parts to carmakers, such as Tesla in Shanghai.
This article appeared in the Business section of the print edition under the headline “Heated exchange”
Business August 27th 2022
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