BEIJING: China is having an eventful month, marked by proliferating power supply disruptions and the debt crisis of the country’s second-largest property developer, Evergrande.Take the energy crisis, which started when a rapid increase in exports – driven by the global recovery – fueled a sharpChina remains dependent on coal for 56.8 per cent of its total electricity supply.
Not surprisingly, the government sprang into action. It ordered a rapid expansion of some coal mines and the reopening of others. It gave utility companies more leeway in setting electricity prices. And it pushed manufacturers to boost energy efficiency and accelerate investment in renewable energy. And if each step of the development is not carefully planned and implemented, this transition could weigh on economic growth.The Evergrande crisis, too, poses serious risks to growth. Over the years, owing to defective corporate governance, the developer expanded at a frantic pace, not only through its real estate investments, but also by diversifying into the electric vehicle industry.