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China to face energy rationing due to high coal price

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Several cities in China including Shanghai and manufacturing hubs, such as Chongquing, have begun rationing their electricity to avoid shortages in the speak summer season.

The rationing is needed due to the rising cost of coal and state price controls which have limited profits and production at state power firms.

There has also been a fall in hydroelectric output. Stephen Joske from the Economist Intelligence Unit says the manufacturing sector will be hit.

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