News briefing for Thursday, August 18, 2022

Here’s what else you need to know about China today:

China has turned to coal mining and cloud seeding to fight the drought-induced power crunch that has hit swathes of the country. The two-month-long heat wave — the longest on record in China, according to the National Climate Center — has depleted key reservoirs used to generate hydropower, while households are cranking up their air conditioners to keep cool.

• Vice Premier Hán Zhèng 韩正 said on a visit to the State Grid on Wednesday that Beijing would provide support for coal to “ensure the energy and power supply,” after the planning ministry said daily fuel consumption from power plants was up 15% in the first two weeks of August, compared with the same period last year.
• The southeast province of Guangdong will start the construction of five coal-fired power projects — with a total capacity of 6.7 million kilowatts — by the end of September, and start production by the end of 2024, Caixin reports.
• Central Hubei Province on Wednesday was the latest of several regions to seed clouds, using silver iodide rods to induce rainfall over the parched Yangtze Basin.

Meanwhile, torrential floods have killed 16 people and left 36 missing in northwestern Qinghai Province, after sudden heavy rainfall triggered flash floods and mudslides, causing rivers to change course. A total of 6,245 residents in six villages have been affected, according to the local authorities.

Tencent has denied reports that it is selling off its stake in Meituan, the Chinese food delivery giant, after Tencent’s chief strategy officer, James Mitchell, said that the report was “not accurate.” Meituan shares in the U.S. rose 3% in New York on Wednesday.

Oil and natural gas production at record highs: According to the National Energy Administration, in the first seven months of this year, China’s national crude oil output was 120 million tons, a year-on-year increase of 3.7%, and natural gas output was 126.7 billion cubic meters, a year-on-year increase of 5.4%. Output of shale oil, marine crude oil, and marine natural gas increased by 14.4%, 7.9%, and 13.6%, respectively.

Big beer profits: China Resources Beer, owner of the Snow Beer brand and distributor of Heineken beer products in China, has announced total revenue for the first half of the year of 21 billion yuan ($3.09 billion), and an increase in net profit of 27.8% year-on-year.

Pinduoduo planning U.S. entry: Yesterday, Pinduoduo, the Chinese ecommerce giant focused on agricultural products and low-end goods, announced that it is preparing to launch a cross-border ecommerce platform in the U.S. in September.

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