FOCUS: Japan's firms in China fret most about power shortage, not Evergrande

Politics Economy

What Japanese companies operating in China are most worried about is not a potential default of debt-laden property developer China Evergrande Group but a supply shortage that could be triggered by electricity insufficiency. Should industrial production become sluggish in China against a backdrop of the brunt of the power shortfall, Japanese firms would struggle to procure necessary components and be impelled to trim their output outlook, probably eroding their profits. "We do not care much about the Evergrande shock because it is unlikely to cause actual harm to our business. This is merely a...

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