Energy crisis in China could make Christmas gifts even more expensive
This year, it may be smart to either buy short-haul Christmas gifts, or calculate a slightly longer delivery time than usual on products made in Asia.
There is already a long wait for products such as waste consoles, sofas, bicycles and a range of products due to a global shortage of microchips and containers. TV 2 has previously told about how sky-high shipping prices make many importers of animals.
Acute energy crisis
Now, power shortages in China are offering and challenging to make the situation worse. An acute shortage of electricity means that the factories are forced to turn down production. And that at the worst possible time, writes TV 2 Denmark.
The delivery time for products that are “Made in China” will be even longer and can also be grown. Items such as Christmas lights, Christmas decorations, toys, electronics, winter equipment and underwear can be affected, according to channels.
– What is the cause of the energy crisis?
– What is challenging is that the spread of the delta variant inhibits production in several places in Asia. At the same time, demand for goods from opening countries is increasing. It is a shortage of very many goods that also comes with this power crisis on top of it all, says chief strategist at Nordea, Erik Bruce, to TV 2.
The green shift
In addition, China has begun to make demands on local information about our CO2 production and the processes for a transition to high energy are problematic.
At the same time, coal-fired power plants are not benefiting from producing more electricity now that prices are high. This means that many factories have to shut down or slow down production. Smaller offers of export goods can lead to higher prices here in Norway.
– The government in Beijing has recently received major local government and demands that they comply with all the new environmental and working life rules that have been adopted several years ago. Local leaders are being measured on their CO2 production, Ma Jun forklift, which is one of China’s foremost environmental experts and head of the non-governmental Institute of Public and Environmental Affairs.
China gets a layer 60 percent of energy consumption from coal and accounts for 25 percent of the world’s total CO2 production.
– Gets painful
There will be store changes in energy and transport. It is a painful transformation, and the current lack of electricity is a reminder that it will not be easy, says Ma Jun to TV 2 Denmark.
In September, I can get the highest level, which is meals in China.
Nordea’s chief strategist believes we must be prepared for increased energy prices in the future.
– We will see more of what is happening now, but it will go in waves. The green shift will mean higher energy prices, but the world must be able to handle it, says Bruce.
Worse case
He believes that Norwegians can afford to face a possible future price increase in the near future, because many have a lot of money after the pandemic.
– What are worse cases?
– The biggest challenge is if there is high inflation in general, where both prices and wages increase sharply. Then the central banks have to set up a lot, says Bruce.
High energy prices have helped lift inflation in the eurozone to 3.4 percent in September compared with the same month last year, Eurostat reported on Friday. This is the highest level since the financial crisis in 2008.
However, the chief strategist is optimistic about Christmas shopping this year.
– I do not think it will be more difficult to get the Christmas presents you want for Christmas, but some items may take a little longer to get, he says.