What is the purpose of large-scale factory power cuts? (two)

In the previous article, we analyzed why China has begun to curtail power in large areas.There are various reasons, so we will continue to share the remaining reasons today. Why do we implement electricity curtailment measures?

But I have some different opinions.At the end of 2019, the global outbreak of the new crown epidemic began.Although China has also experienced a severe stage of transmission, China has quickly controlled the epidemic and managed it in a scientific way, so that all people can quickly recover whether they are living or working.

As of September 20, 2021, many countries around the world are still at a loss or poor management of the spread of the epidemic.Take the United States as an example. So far, more than 40 million people have been sick in the United States, and more than 600,000 deaths have been reported.

Under such circumstances, many countries cannot return to normal production conditions, especially countries dominated by processing and manufacturing, such as Vietnam in Southeast Asia; India and other countries.A large number of orders from around the world have begun to flock to China. Take the drinking bottle factory as an example. During a special period of time, there is no need for publicity and cost management. It can be said that as long as the factory can produce, there will be orders.At the same time, some developed countries in Europe and the United States can only print a large number of banknotes in order to stabilize the financial and capital markets when the epidemic cannot be managed.

Due to the low prices of Chinese export products, there are many reasons for the low prices. One of them is that export companies enjoy tax rebate policies.Under such circumstances, if China does not stop work and stops production blindly, it will become the country that suffers the most from the devaluation of European and American banknotes.

Therefore, in such a situation, power rationing and work stoppage is a measure to resist this situation.Although it will cause pressure on the factory, it also requires the factory to increase production costs, increase export prices, and reduce the risk of depreciation.At the same time, including exchange rate control, these measures will also protect China's economic and financial system, and strictly control the rapid occurrence and transformation of inflation.

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