But, the author goes on to say, there may also be a silver lining in falling energy prices for the rest of the world too.
According to reports, Chinese coal stocks are down to 18 days’ cover, deemed dangerously low by Beijing's standards and the reasons behind it are not dissimilar to Europe's:
"Covid upset the rhythms of the global fuel market. The weather was extreme: drought hit hydro-power, and the hot summer boosted air conditioning. The result was an explosion in demand for coal and gas.
The knock-on effects of fossil fuel shortages on the wider economy has been profound but a planned re-orientation away from property and construction was part of the government's wider political plan in any event because:
"It diverts funds from the green, hi-tech, robotics, AI, cloud computing, and advanced semiconductors sectors, where the struggle for superpower mastery is really taking place.
Furthermore: "The property squeeze is compounded by a parallel squeeze on carbon. Xi has promised peak CO2 emissions by 2030, a 25pc cut per unit of GDP by 2025, and a 3pc cut in energy intensity this year.
He knows that China is paying a high credibility price for foot-dragging as Europe and the US launch green deals (nobody can hide behind Trump any longer), and may soon face a carbon border tax in its top markets if it is not careful."
But there is a silver lining for the rest of us:
"If China is slowing as hard as doubters suspect, it will do the world a big favour and head off a political crisis in Europe and the UK this winter. No elected government can easily survive loss of control over energy security. Nor should it.
It may also head off a backlash against net zero policies at a delicate moment in the transition, before the benefits of cheaper post-fossil energy become self-evident, and there is no looking back. So unless you are a climate denialist, raise a glass to Xi Jinping."
The full article can be read here with a link to the original beneath it:
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