China limits power in at least 20 provinces due to the new policy

China has extended power restrictions to at least 20 provinces and regions as it struggles to cope with the power shortage in its north-eastern region.The areas affected by the most recent restrictions together account for more than 66% of the country’s gross domestic product.The power cuts are causing power supply discrepancies, with the situation expected to further inflate global supply chains.

A growing power supply crunch in China is triggering blackouts for households and forcing factories to cut production, threatening to slow the country’s vast economy and place even more strain on global supply chains. Factories are cutting production and raw material prices are keep on rising.

Companies in the country’s industrial heartlands have been told to limit their energy consumption in order to reduce demand for power, state media has reported.