Global Resource Shortages And Supply Chain Crisis
In recent times, the world has been plunged into a crisis of resource shortage almost at the same time. With 20 provinces in China limiting electricity, major cities in the UK running out of oil, and the US in a supply chain crisis, it seems that overnight, people around the world are having to re-examine the energy supply in the regions they live in. So, how can the world, which has long entered the modernization of the 21st century, have a crisis of resource shortage at the same time? Where will the world situation go after the crisis? These are questions that need to be seriously considered and studied by all, especially by those in power in each country.
Global Resource Shortages,China’s Power Cuts Spread To 20 Provinces
According to a response from the staff of the State Grid of China, the gap in the grid is particularly large due to the recent tight supply of electricity, which is unable to meet the continuously growing demand for electricity from the general public. In order to ensure the arrival of an even larger peak in electricity consumption in the coming months, restrictions on residential electricity consumption in some areas of the three northeastern provinces began on September 23.
In addition to the restrictions on residential electricity use that began in the three northeastern provinces, the remaining dozen Chinese provinces, regions and municipalities have also imposed restrictions on industrial electricity use. The scale of this restriction has expanded from the three northeastern provinces to 20 provinces, districts and cities in China.
Although this “tidal wave of power restrictions” has affected the normal life of residents in some areas of the northeast, it is still a necessary measure from the perspective of China’s overall power situation. The current power cut is to ensure the safety of China’s power grid. If precautionary measures are not taken, it could lead to a nationwide grid collapse.
There are many reasons why there is a significant power shortage in northeast China this time. First, the temperature in northeast China has been gradually decreasing since September. The government’s central heating has not yet started, most residents will warm up by turning on air conditioners and electric blankets, and electricity consumption for living continues to climb. In addition, with the epidemic under control, major industrial enterprises ushered in the peak production season, industrial electricity consumption is also in the midst of an over-expected increase.
On the supply side, coal prices rose to the highest point in several years, and the benefits of thermal power generation gradually decreased. Due to weather factors, wind power is in short supply, resulting in a shortage of power resources.
Overall, the current power restrictions in China are more of a necessary measure to avoid a massive grid collapse, and the overall grid operation and energy supply remain within manageable limits.
90% Of Petrol Stations Out Of Fuel, “Global Resource Shortage” In The UK
In the British Isles, the most important question for the general public is “Where can I fill up?” According to British media reports, up to 90% of petrol stations in large and medium-sized cities in the UK are already sold out of refined oil, and there is even a “rush to buy” in order to refuel their cars first. The most direct reason for this is the severe shortage of truck drivers in the UK and the lack of manpower in the transportation sector, which makes the transportation of oil a problem.
The reason why there is such a large-scale shortage of truck drivers in the UK, in addition to the epidemic foreign truck drivers have returned to their home countries, and the British government’s “Brexit” policy and the resulting lack of free movement of labor has a lot to do with. As an island country, Britain naturally needs to communicate with mainland Europe economically and socially, but “Brexit” has tightened the immigration policy and made it more and more difficult for foreigners to work in Britain. The supply chain crisis” in the UK has broken out.
If the oil shortage affects only part of the normal life of people with cars, then the issue of food supply is something that the whole of Britain must seriously consider. Many British supermarkets are tight supply problems, part of the shelves are empty, seriously affecting the normal life of the public. How to solve the immediate crisis, is the Johnson government must face the problem.
KFC has no chicken to fry, supermarkets restrict purchases, the crisis in the United States is becoming more and more serious
Not only is the United Kingdom on this side of the Atlantic in the “supply chain crisis”, the United States of America on the other side of the Atlantic in a more serious situation.
First of all, look at the food supply, which is closely related to everyone. According to the U.S. federal government statistics show that in August the U.S. poultry supply fell by 20%, beef reserves fell by 7.7%, reaching the lowest point in recent years, has been enjoyed by everyone can “eat meat” of the United States, facing a shortage of meat products supply situation.
KFC, the most famous fast food brand in the United States, has in fact fallen into the situation of “no chicken to fry” because of the serious shortage of boneless chicken.
As the end of the year approaches, the U.S. enters the most frequent holiday season of the year, with Halloween, Thanksgiving, Christmas, etc., but when people go to the supermarket to buy goods, they find that “there is no stock”, and that “everything is short”. Retailers struggle to survive under supply chain crisis.
The most immediate problem why the U.S. is in such a predicament is the difficulty of recruiting workers. According to the official data, there are 10.9 million job vacancies in the United States, and most people prefer to stay home and receive benefits rather than work in an inflationary environment, where they will not get as much money as before. Because of the difficulty in recruiting workers, the large cargo ships clogging the U.S. ports are approaching 100. Cargo arrives in port and cannot be unloaded, so that all kinds of goods can not reach consumers.
In addition, the epidemic factor, the Biden administration’s inaction, are the reasons for the problems in the U.S. supply chain.
Where is the world situation headed?
China’s power restrictions are transient, structural problems that do not affect the overall picture of China’s development. But the transportation problems, supply chain disruptions and price spikes in the U.S. and the U.K. are likely to put the global economy, which has not yet fully recovered, in the abyss again.
In addition, the U.S. debt crisis is about to erupt. According to U.S. Treasury Secretary Yellen, if the Biden administration does not take measures, the U.S. Treasury savings will bottom out by the end of October. The supply chain crisis and the debt crisis are intertwined at the same time, can the Biden government save the day?
If the U.S. debt crisis completely erupted, not only the U.S. economy will be hit hard again, the people of the world will have to take the blame for the Americans. And from the current point of view, the only way to effectively avoid a full-blown U.S. debt crisis is for China to come to the rescue and help the United States through this crisis.
Although many U.S. media are calling for “China to lend a hand to the United States,” the international political game has always been very realistic and cruel, since the U.S. side has to help China, it must make concessions to China on certain issues, so that the Chinese can see the sincerity of the United States. From the current point of view, although the United States has some signs of easing towards China, but compared to the “bailout” this big bargaining chip, the conditions offered by the United States simply can not meet the price in China’s mind.
As early as the end of July during Sherman’s visit to China, the Chinese side solemnly put forward two lists of mistakes to the U.S. side, respectively, a list of correcting wrong policies and words and actions towards China and a list of key cases of concern to the Chinese side, and only if the U.S. corrects the contents of these lists one by one, there will be a possibility of easing Sino-U.S. relations and China will give due consideration to the bailout.
In a word, only an open market can ensure the flow of economic factors, and only by developing good relations with China, the largest market and the “world factory”, can we avoid a crisis to the greatest extent. Biden and Johnson are not unaware of the reasoning, but it will not be possible to make them change their measures towards China overnight.
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