China’s manufacturing is shrinking faster than China or the media will let on. Mixed with the corporate and government solvency issues in the trillions, the country is facing a financial crisis.
We’ve reported on the solvency crisis of numerous companies involved in China real estate are facing of late. It started with Evergrande and now multiple companies with billions in debt have been identified with solvency issues.
The Gateway Pundit also reported on the solvency issues local governments are facing. Another $8 trillion is reportedly hidden in the books of local governments throughout the country.
We also learned that China stopped providing electricity to its manufacturers to one day a week.
More Woes for China as It Institutes Nationwide Power Cuts Negatively Impacting Its GDP
But there may be more to this. Per recent information we received from inside China, manufacturing concerns in some areas, like Dongguan, near Shenzhen and across from Hong Kong, are down to working only 3 days a week or less. (This city is located in the Pearl River Delta where some 50 million people are reportedly living, making it the most populous place on the planet.)
But it might actually be worse. According to the South China Morning Post:
China’s army of small and medium-sized manufacturers (SMEs) have been hit hard by the nationwide power crisis, with outputs slashed and sweltering working conditions taking their toll, while panic buying of raw materials and goods is becoming commonplace over fears prices are set to soar.
Some producers are stockpiling inventory or buying equipment that uses less power, with Chinese media reporting on Tuesday that at least 20 out of 31 provincial jurisdictions have rolled out electricity-rationing measures in recent weeks, crippling businesses and households.
Candle factories are among those rushing to meet orders as demand soars, but most factories and manufacturers are facing slowing production, rising costs and lower profits as the crisis which has escalated over the past month worsens.
“Our output is down by at least a third, and we can only work from midnight to 8am. Workers are dozing off, and their efficiency is much lower than during the day,” said Wang Jie, a footwear manufacturer in Dongguan, Guangdong province…
…“Some factories are even being banned from producing [any goods] for six days after operating for only one day. It sounds so ridiculous, but it‘s true.”
China is facing an economic crisis or is already in a crisis, either way, this is a serious development.
The post EXCLUSIVE: Numerous Chinese Manufacturers Are Working Only 1-Day a Week As China Faces an Economic Crisis – 20 of 31 Provinces Roll Out Electricity Rationing appeared first on The Gateway Pundit.