China has extended power restrictions to at least 20 provinces and regions as it struggles to cope with the power shortage in its north-eastern region.

The areas affected by the most recent restrictions together account for more than 66% of the country’s gross domestic product.

The power cuts are reportedly causing power supply discrepancies, with the situation expected to further inflate global supply chains.

Chinese state media reported that Heilongjiang, Jilin and Liaoning are among the north-eastern provinces most affected by the power shortages.

Two factors have contributed to the ongoing ‘power crunch’ situation in the country.

A rise in coal prices has caused power generators to trim their production capacity despite an increase in power demand.

In addition, some provinces have had to halt their electricity supplies to meet emission and energy intensity goals.

As a result, millions of homes in the country are facing a blackout situation, with factories closing their operations.

What has the impact been on China's economy?

Official figures have shown that in September 2021, Chinese factory activity shrunk to the lowest it had been since February 2020, when coronavirus lockdowns crippled the economy.

Concerns over the power cuts have contributed to global investment banks cutting their forecasts for the country's economic growth.

Goldman Sachs has estimated that as much as 44% of the country's industrial activity has been affected by power shortages. It now expects the world's second largest economy to expand by 7.8% this year, down from its previous prediction of 8.2%.

Globally, the outages could affect supply chains, especially towards the end-of-the-year shopping season.

Since economies have reopened, retailers around the world have already been facing widespread disruption amid a surge in demand for imports.

It hasn't made a big influence to the Fujian factories,our factory had been told to stop the production for two weeks.But still of that,we lose a big deal of polyester clean room wipers.