BEIJING–China’s government unveiled tens of billions of dollars of economic support for its power and agricultural industries, which have been grappling with a record heat wave and drought that have cut into industrial production.
The State Council, which serves as China’s cabinet, approved 200 billion yuan ($29 billion) in new debt for the country’s power generators and an additional 20 billion yuan fighting the drought and aiding the nation’s rice harvest.
The financial support for China’s power sector is unlikely to do much in the near term to alleviate power shortages that have hit the province of Sichuan and the sprawling metropolis of Chongqing in central China, among other areas. But they show how closely the central government is monitoring the matter ahead of a sensitive Communist Party meeting set to take place later this year.
The drought has dented hydropower output in Sichuan, which accounts for much of the province’s electricity output, some of which is also shipped to other parts of the country. The lack of rainfall has coincided with a heat wave that has caused power demand to rise as households use more air conditioning to stay cool.
A farmer’s chili peppers dried up at a village in Chongqing municipality.
Photo:
Mark Schiefelbein/Associated Press
The heat wave is the worst to hit China in six decades. Areas of central and southwest China have seen temperatures as high as 110 degrees Fahrenheit. Water levels in parts of the Yangtze River—a crucial source of water for hydropower and artery for transportation—have been at their lowest since recordings began, the government has said.
In response, the government has forced many factories to curtail operations, including large manufacturers such as Foxconn Technology Group, a major supplier to
Apple Inc.
Meanwhile,
Tesla Inc.
has also sought government help to ensure its suppliers in Sichuan will have a sufficient electricity…
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