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What the numbers say: China's residential electricity prices rose steadily from September 2020 to September 2021. Prices suddenly decreased in late 2021 and stayed at a more affordable level for the following year. Relevance: Access to cheap electricity is vital for China's world-leading manufacturing sector. It also reduces cycles of poverty and promotes a stable middle class. The graph indicates that China is effectively managing its electricity prices. In 2021, China produced more electricity than the U.S., India, and Russia combined. Brands that should care: Manufacturers should note China's shrinking energy costs when considering ways to reduce expenses. Furthermore, by keeping energy prices low despite high demand, China is signaling an investment focus on the efficiency and scale of its energy infrastructure. Power and tech energy firms could seek to gain a share of this investment. |
