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.
In addition, the China Ministry of Ecology and Environment has issued the draft of "2021-2022 Autumn and Winter Action Plan for Air Pollution Management" in September.
During the autumn and winter this year(from 1st Oct. 2021 to 31st Mar. 2022), the production capacity in some industries may be further restricted.
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.
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.
Of course, in the implementation of the policy, there will be some industrial enterprises affected.
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.
Considering together about the global transportability, it would be a challenge for both exporter and importer.
To mitigate the impacts of these conditions, if you are importing or going to import from China, we would seriously recommend that you could place orders the earlier the better.
So that manufacturers could arrange production in advance to avoid any matter which might cause delay and ensure shipments could be delivered on time.
Believe we could work together to get through this difficult time.
Tomorrow will be better.