Ⅰ、Background of power rationing in China

The global epidemic has not been well controlled. China has done a good job in controlling the epidemic. Therefore, many manufacturing orders have been remitted to China, which has led to the rapid growth of China's power consumption. In August this year, China's development and Reform Commission issued a list of 9 provinces (regions) such as Guangdong and Fujian. The energy consumption intensity did not decrease but increased year-on-year, which was a level-1 early warning and faced rectification.

Ⅱ、Impact of power rationing in China

Power rationing has the following impacts on the walkie talkie industry:

1.  Cost increase

①Raw material cost: China's power rationing has a huge impact on the manufacturing cost of high energy consumption and high emission, and the raw material cost of walkie talkie will rise accordingly.

②Labor cost: power rationing will also increase labor cost

③In addition, due to the increase of Chinese orders, the shipping cost also increases. Shipping prices have increased the pressure on export enterprises

2. Price increase

①Increased demand: as a large number of orders are remitted to China and power consumption is limited, the demand of walkie talkie market will exceed the supply

②Cost increase: due to the above reasons, the trade cost of walkie talkie increases

Therefore, the prices of many manufacturing products, including the walkie talkie industry, will rise and rise.

3.Extension of delivery time:

Due to power rationing in most provinces of China, the manufacturing efficiency related to walkie talkie production also decreases and the production capacity decreases. Therefore, the delivery time of orders for the same products and quantities will be extended

Ⅲ、In summary

For the walkie talkie industry under the background of power rationing, the price will be higher and higher, the delivery time will be extended, and this phenomenon will continue in a short time.