Apple, Tesla suppliers suspend production in China due to collapsing power grid

Localized “electricity constraints” are hitting Chinese component suppliers that provide parts for companies like Apple and Tesla.

According to reports, component suppliers for a number of major technology and automobile corporations have suspended operations because they claim that there is not enough energy available to produce their wares.

Pegatron, which assembles iPhones for Apple at manufacturing plants in Kunshan and Suzhou, announced that it is “taking energy-saving measures to comply with local government policies” – which means fewer iPhones available to consumers.

The company says that as of Sunday all operations are still running normally. However, there are alternative power generation sources available in the event that the Chinese government shuts off power to their plants, which could happen at any time.

“Pegatron has been adopting energy- and water-saving measures over the past few years and there is a comprehensive response program for the current situation to reduce the impact on our operations and production capacity,” the company announced in a statement.

Other suppliers have warned that they, too, are facing power outages that could last anywhere from a few days to several weeks. Several top suppliers for both Apple and Tesla have already had their power cut off, forcing them to cease production indefinitely.

Foxconn, a subsidiary of Eson Precision Engineering and one of the world’s largest iPhone assemblers, announced that it had to suspend operations for about a week in the Chinese city of Kunshan due to environmental measures.

“The company will leverage its inventory to maintain the operation while production is halted,” Eson wrote in a filing with the Taiwan stock exchange. “We expect to arrange production on the weekends or in the upcoming holidays [next month] to meet customers’ needs.”

Is this another form of Chinese warfare against America?

Interestingly, many of the areas where power is being cut off in China are considered to be top industrial hubs, meaning consumer goods exported to North America are manufactured there.

The more things shut down, in other words, the fewer products make it to the United States, which is already struggling with labor shortages and supply chain disruptions that have left shipping barges stuck at sea with nowhere to port.

Unimicron Technology Corporation, a major printed circuit board manufacturer and a top supplier for Apple, announced that operations would cease until the end of the month due to new restrictions. Concraft Holding, which makes speakers for iPhones, issued a similar announcement.

Each one of these companies and many others claim that they have backup energy or other manufacturing facilities in unaffected areas that can help to pick up the slack. This may or may not be true, and only time will tell.

At the order of Beijing, China has to abide by new energy restrictions that are limiting the country’s ability to manufacture goods for the West. This is all too convenient for China’s long-term goal of destroying the West, especially at a time when the Chinese Virus is already creating major chinks in the global supply chain.

“So, China is a manufacturing superpower no more?” asked a commenter at Zero Hedge. “Never put all your eggs in one basket, and never put all your factories under one foreign nation and one foreign government.”

“China is more democratic and more anti-communist than the USA these days,” responded another with a different perspective. “Not to say they are good. Just to say they are better. We’re controlled by the Larry Finks of the world: capitalism for them and communism and slavery for everyone else.”

To learn more about how a global economic collapse is right now being ushered in through the Trojan Horse of “covid,” visit Collapse.news.

Sources for this article include:

ZeroHedge.com

NaturalNews.com