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Notice: some industries will be impacted by the “dual control of energy consumption”policy of the Chinese government.

2021-09-28

Recommendation to our customers

Perhaps you have noticed that the recent “dual control of energy consumption”policy of the Chinese government, which has a certain impact on the production of some manufacturing companies, and the delivery of orders in some industries has to be delayed. In addition, the China Ministry of Ecology and Environment has issued the draft of “2021-2022 Autumn and Winter Plan for Air Pollution Management” in September. During the autumn and winter this year(from 1st Oct,2021 to 31st March 2022), the production capacity in some industries may be further restricted. To mitigate the impact of these restrictions, we recommend that you place the order as soon as possible. We will arrange production in advance to ensure your order could be delivered on time.

Dual control of energy consumption is tightened, impacting industrial production

Since mid-August 2021, some regions have substantially restricted production under the constraints of the "dual energy consumption control" goal. According to the goal set out in the 2021 "Government Work Report", energy consumption per unit of GDP needs to be reduced by about 3%. On August 12, the National Development and Reform Commission issued the "Barometer of Completion of Energy Consumption Dual Control Targets in Various Regions in the First Half of 2021", which showed that in terms of energy consumption intensity reduction, the energy consumption intensity of 9 provinces (regions), including Qinghai, Ningxia, Guangxi, Guangdong, Fujian, Xinjiang, Yunnan, Shaanxi, and Jiangsu, did not decrease but increased in the first half of the year, which is a first-level warning; and other 10 provinces besides Zhejiang, Henan , whose energy intensity reduction rate did not meet the progress requirements in the first half of the year, are second-level warnings. Subsequently, various localities have successively introduced strict power and production restrictions, including Jiangsu, Guangdong, Yunnan, Shaanxi and other provinces. The production is restricted in the chemical, steel, non-ferrous metals, non-metallic building materials and other industries.

 

The historical background  of "dual energy consumption control"

The concept of "dual control of energy consumption" itself was first proposed in the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China on October 26, 2015. , The municipality’s administrative region sets targets for total energy consumption and intensity control, and supervises and evaluates local governments at all levels; incorporates energy-saving indicators into performance evaluation index systems such as ecological civilization and green development, and guides the transformation of development concepts; Consumption double control targets, carry out target responsibility evaluation and assessment, and promote key energy-using units to strengthen energy-saving management.