ASSESSMENTS

China Political Memo: May 23, 2011

May 23, 2011 | 13:58 GMT

NICOLAS ASFOURI/AFP/Getty Images

Summary

While power shortages are not uncommon in China, the current shortage began well ahead of the normal peak period for power interruptions and the country is now facing its worst shortage in seven years. Demand for power is increasing — in March, nationwide power usage increased 11.2 percent over the same month in 2010. But increased prices for coal are causing problems for the firms that generate China's power.

China's current power shortage will persist, stymieing power-price reforms....

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