As we all know, the lack of electricity in China in recent months has made many factories investing in this country miserable because they have to switch to diesel generators or stop working. In addition, the lack of electricity has greatly affected people who need heating when winter comes early this year in China.
The Discussing East and West channel said that China’s lack of electricity was due to the struggle between Xi Jinping and Jiang Zemin. Specifically, the Chinese Communist Party (CCP) is preparing for its 20th congress next year, which will decide whether Mr. Xi will stay in office. Against this backdrop, Xi is stepping up the purge of Jiang’s political opponents in the CCP. In the opposite direction, the Jiang faction caused power cuts in the northern provinces of China to counterattack.
Financial commentator Zhang Jinglun said that China’s five major Power corporations, along with China Grid Corporation and China Southern Grid Corporation, are all in the hands of Jiang faction interest groups. That means these corporations can completely cut off electricity to create fake power shortages, causing an economic recession, which is the basis for the collapse of Xi Jinping’s image.
In addition, According to the Chinese-language Epoch Times, China’s lack of electricity is due to a lack of coal. There are two main reasons why China falls into a serious coal shortage. First, Beijing requires restrictions on coal production to protect the domestic environment. Second, for political motives, the Chinese government has restricted Australia’s coal imports.
To solve the severe coal shortage, Beijing is taking two basic measures. First, they asked to restart the banned coal mines and asked for an increase in coal mining output, and secondly, they asked mining and coal supply companies to reduce their selling prices.
In August, when there was a widespread power shortage, Chinese authorities allowed banned coal mines in Inner Mongolia and Xinjiang to reopen.
Reuters reported on October 8 that the Chinese government had asked 72 coal mines in Inner Mongolia, the second-largest coal-producing region on the mainland, to increase capacity to nearly 100 million tons a year, from 178.45 million. tons/year as at present to 276.8 million tons/year.
The Chinese-language Epoch Times reported that, to find a solution to the coal shortage problem, on October 19, the Chinese government’s Development and Reform Commission held a meeting with representatives from coal companies. , coal industry association, and power sector representative. These are all CCP companies and organizations.
During the meeting, representatives of the Chinese government asked coal-producing companies to reduce coal prices by 10%; under great pressure from their superiors, these companies agreed. On the same day, coal companies in Yulin city, Shaanxi province, conveyed an order from the Chinese government that each ton of coal must be discounted by 100 yuan and immediately comply with the instructions.
However, the two ways of dealing with the CCP’s problems mentioned above not only did not bring them much but on the contrary, they made the CCP reveal itself once again. The first solution shows that CCP does not really want to protect the environment, the second way demonstrates that CCP requires the world to recognize China as a market economy, but in reality, CCP does not want this to happen out in China.
CCP does not want China to have a true market economy. This is understandable because the CCP advocates building a socialist economy where the CCP has the right to manipulate all. The CCP always considers itself the only entity in power in China, believes in fighting against the heavens and the earth, so it thinks that their orders will definitely be obeyed and difficulties will be solved by operating command.
Their belief seems well-founded. The Nine Commentaries indicates that, over the years, the CCP has turned the Chinese people into “uncorrupted screws in the revolutionary machine,” or “tools in service of the Party,” or weapons attack in whatever direction the Party directs.”
However, CCP could not foresee that leaders of coal companies and associations are also members of CCP, so they carry the full nature of this organization. These people will also put their personal interests above the interests of CCPs, just as CCPs are willing to put aside their commitment to protecting the environment to protect themselves. In addition, CCPs do not fully anticipate the consequences behind their volitional decisions.
According to the Chinese-language Epoch Times, the CCP’s forcing to reduce coal prices has the opposite effect. If coal prices increase following the free market mechanism, coal companies see high profits, workers see high bonuses, and they push coal production. But CCP has ordered to reduce coal prices, so coal companies and workers will no longer be enthusiastic about producing.
The newspaper, with many Chinese readers, also said that the CCP’s policy of planned economic color on the coal industry also had another negative impact, that was, it had invisibly created favorable conditions for black market coal. It is explained that CCP requires coal companies to reduce prices, but these coal companies may not necessarily sell coal to Chinese government power plants at a price set by CCP.
Coal companies may sell part of coal to private companies at a higher price to make a profit, this amount of coal will be larger and larger, and a black market for coal will be formed. This black market coal price is the market price, and CCP’s power plants will still be short of coal.
The CCP’s solution to the coal shortage shows that the ruling entity in China does not have many options to deal with the crisis, the measures they offer are directed at solving this gap but at the same time create other vulnerabilities, even the new one is bigger than the old one. Beijing’s retaliation against Canberra with an order to restrict the purchase of Australian coal or the fact that this power ordered companies to reduce the price of coal has created consequences for themselves; Chinese ancients liken this to a person putting a stone on his own foot.