How to minimize the effects of China's energy crisis on your hardware imports

The serious energy crisis that China is suffering threatens its economy and causes power cuts, factories that close totally or partially, global supply chains that are faltering. Could this situation also affect companies importing hardware?

According to the Autumn and Winter Action Plan 2021-2022 for Air Pollution Management emitted by the Chinese Government, this situation could last from October 2021 to March 2022.

China Energy Crisis 2021

Electricity restrictions are frequent in China. Where they usually affect only one region, the current crisis covers, according to estimates, about 20 provinces. The rising coal prices. The increase in the demand for electricity. And on the other hand, the environmental standards that are established to reduce carbon emissions aggravate the global shortage.

Blackouts makes entire streets darken. Households run out of electricity and thousands of factories have to stop their production totally or partially.

According to official government data, China’s energy crisis has caused the manufacturing industry to suffer its first contraction from February 2020 to September, being energy industries the most affected.

Carbon emission reductions in the coming years

China must meet the requirements set out in the central government’s plan to reduce carbon emissions. The Asian giant will reach peak emissions by 2030 and carbon neutrality by 2060. Chinese local governments take steps to reduce CO2 emissions and energy consumption by restricting the supply of electricity power.

As a result, many power plants have been forced to suspend some of the power generation due to notable increases in coal and gas prices.

General recommendations in the face of China’s energy crisis

These and other necessary measures will have an impact on increased costs. From raw materials to packaging. And also, in the delivery time of manufactured products. That is why it is recommended:

  • Place orders with suppliers in time, as well as keep in mind the possibility of delayed shipments.
  • Work with manufacturers that operate with power generators.
  • Schedule product quality inspection before shipment to avoid possible saturation of factories.
  • Know how the current crisis is developing and which factories cut or stop their production.

Why working with IBMH can minimize the effects of China’s energy crisis

With IBMH it is easy to work even in these situations as complex as the one we are experiencing now in China. Firstly because of our extensive experience in the sector. And secondly for knowing first-hand what happens in our country of residence.

Among the main advantages of having IBMH as a partner in this situation, you will find:

  • There will be no surprises! We know first-hand those factories that have limited their production capacity to 50% or completely limited, because we verify the veracity of the information they provide us by personally visiting their facilities.
  • Orders handled by IBMH take precedence for our suppliers. Many years of collaborating maintaining an excellent relationship with our suppliers. This guarantees us that in situations like this where you may have production limitations, we will always be among your priorities and our orders will be the first to be supplied.
  • IBMH has, always, alternative solutions. If a regular supplier cannot produce a certain product due to these energy limitations, we will be able to count on other manufacturers that offer the same quality and under the same conditions.
  • We can even guarantee the achievement of purchase orders with a large volume of parts. Because, thanks to our extensive network of suppliers audited by ourselves throughout the country, we can work with several manufacturers and several purchase orders at the same time of the same product, to also complete large orders, always maintaining all the technical and quality specifications required.

Having IBMH is always a guarantee of success for your hardware imports from China

At IBMH we take care of negotiating on behalf of your company. And to contact directly with the most profitable suppliers, even those who do not attend the international fairs of the sector. Without more intermediaries and always checking that our highest quality standards are met.

By knowing the Chinese language, we can always look after your interests. Especially when they threaten changes as remarkable as this. You will always be informed of what is happening regarding the energy crisis in maximum detail. And, in addition to analyzing the needs of your company, we will take care that your imports suffer the least possible setbacks such as the Chinese energy crisis.

We will become the best partner for your imports of furniture and construction hardware from China, not only to obtain a good purchase price, but also to face any crisis that arises. Contact us today and we’ll tell you everything we can do for your business!