Impact from “Dual Control of Energy Consumption” Policy

Impact from “Dual Control of Energy Consumption” Policy

Perhaps people from other countries have noticed that the recent “dual control of energy consumption” policy of the Chinese government has had a certain impact on the production capacity of some manufacturing companies, and the delivery of many orders in some industries has to be delayed. The reduction of capacity will also cause raw material cost rising.

In addition, the China Ministry of Ecology and Environment has issued the draft of “2021-2022 Autumn and Winter Action Plan for Air Pollution Management” in September. This autumn and winter (from October 1, 2021 to March 31, 2022), the production capacity in some industries may be further restricted.

Suppliers face some distress from “can’t increase the price” to “don’t want to increase the price” to “have to increase the price”. And the buyers are also in a bind from “expensive” to “so expensive” to “super expensive!” after waiting and waiting. Then they get the point that the best way to save money is to order in advance.

To mitigate the impact of these restrictions and also the high freight rate, the buyers are recommended to place the orders as earlier as possible when they have purchasing plans, then the Chinese suppliers will arrange production in advance to ensure delivering on time.