China is the latest country to be affected by the global energy disruptions that followed Russia’s invasion of Ukraine. But after spending on costly “zero Covid” measures, local governments have few resources to to buy expensive natural gas.
According to news agencies, China’s national government has told local governments to provide heat, but it has not given them money to pay for it. Mass-testing campaigns in the final days of “zero Covid” drained their coffers. As a result, provincial and municipal governments have reduced customary subsidies for natural gas, which used to keep a lid on heating bills.
Now, gas is effectively being rationed, with households receiving the minimum needed for cooking food but very little for heat. Tens of millions of people are angry, and their frustration has spilled over to social media. “Nothing seems to be working, partly because nobody seems to have much cash,” one expert said.
China, like Europe, has long relied on Russia for some of its gas. But Europe has had an unusually warm winter, which has pushed gas prices lower there and helped countries get through the squeeze. In China, by contrast, unusually bitter temperatures have pushed gas prices higher. Climate change may usher in an era of trade wars.
It’s in the best interest of the U.S. to help China develop new treatments to blunt Covid’s spread, Michael V. Callahan, an expart argues.