Korean Companies in China Being Frustrated in Strict Electricity Restrictions

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Korean companies successful China person encountered operational difficulties owed to strict powerfulness usage restrictions. For these companies, a Korean adept says, it is useless to plead with Chinese authorities, careless of the losses they endure from the policy.

Pohang Iron and Steel Co. Ltd (POSCO), a Korean alloy giant, recently told the Yonhap News Agency successful Seoul that its stainless alloy works successful Zhangjiagang city, Jiangsu Province, restarted successful aboriginal October, with the cognition complaint maintaining astatine 80 percent. The works was compelled to unopen down by the section powerfulness restrictions successful precocious September.

The powerfulness proviso has not been wholly chopped off, citing a root the quality agency, but arsenic the section authority’s grip connected energy usage for the day, the endeavor is constricted to run astatine nighttime only.

The study says that astir of the Korean companies acquisition trouble successful talking astir the concern implicit concerns successful maintaining a bully narration with the Chinese section authorities.

The insufficient powerfulness proviso is not lone affecting Korean companies, but each companies successful China are facing the aforesaid problem, truthful it is hard to marque applicable requests to the Chinese side, said a unit subordinate of the Korean diplomatic bureau successful China.

Epoch Times Photo Kim Dong-son, manager of the overseas bureau of Korea Institute for Industrial Economics and Trade (Courtesy of Kim Dong-son)

Kim Dong-son, manager of the overseas bureau of Korea Institute for Industrial Economics and Trade, a Korean nationalist argumentation probe institute, told The Epoch Times connected Oct. 20 that alternatively than saying that these Korean companies successful China are indecisive, it would beryllium amended to accidental they cognize it is useless to outcry retired astir their difficulties.

Kim said the Chinese section authorities seemed to displacement the work of the powerfulness cuts argumentation to Beijing. But since everyone successful China is suffering from a powerfulness shortage, Korean companies are not exempt from getting their powerfulness proviso cut.

Even though immoderate Korean companies could bespeak the concern unneurotic done the embassy, they recognize that this would not code the crux. “It is hard to alteration the presumption quo,” said Kim. “So, thing peculiar for them tin beryllium done successful respond [to the dilemma].”

Kim besides noted that successful China, it’s hard to ideate that companies volition rise objections. Once the Chinese Communist Party (CCP) has projected an vigor policy, companies that neglect to conscionable their targets would beryllium restricted by the CCP and adjacent ordered to halt accumulation astatine immoderate time.

“If it becomes a thorn successful the oculus of the CCP, the institution volition endure much superior scrutiny,” Kim added.

In fact, not each Korean companies successful China are taxable to powerfulness proviso restrictions, arsenic observed by Kim, “For example, semiconductor companies specified arsenic Samsung and SK Hynix, which defined arsenic strategically important by the Chinese regime, are apt supplied with electricity.”

The interaction of China’s powerfulness cuts argumentation connected “some ample companies similar POSCO, whose factories successful China are equipped with sizeable automation and biology extortion devices, should beryllium comparatively little harmed, portion connected tiny and medium-sized Korean companies, would beryllium the hardest blow.”

Kim besides mentioned that “chimney companies,” similar immoderate car bolts manufacturers successful Jiangsu Province, not lone usage a batch of energy but besides origin superior atmospheric pollution.

“Those companies are hard to get a concession from China’s powerfulness chopped policy,” Kim said.

Kim holds the presumption that powerfulness shortages, to immoderate extent, are caused deliberately by the restrictions argumentation of CCP. “China [CCP] adjusts vigor argumentation done this benignant of daze therapy, which is hard for democracies and marketplace economies to bash so. But Chinese communist peculiar societal strategy makes it possible.”

In caller years, powerfulness shortages and rising labour costs person driven galore companies to determination their accumulation lines from China to Southeast Asian countries. “For companies, it is inevitable to nutrient successful places wherever accumulation costs are low,” Kim said.

Khasub Lee contributed to this article.

Jessica Mao


Jessica Mao is simply a writer for The Epoch Times with a absorption connected China-related topics. She began penning for the Chinese-language variation successful 2009.