China’s Energy Crisis

... electric energy market has failed to emerge in the past decade. The rates did not reflect the real costs borne by generating companies either before the 2011 crisis, or in 2021, which is an important feature of the industry. It is no accident that the energy sector is called a “ shock absorber ” that ensures the relatively sound development of the Chinese economy. When fuel prices fluctuate wildly, state-owned generating companies always suffer financial losses—that is, the more energy they produce, the greater their losses are. Reports of China’s leading generating companies suggest that only Huaneng ...