As previously reported, China's Dual Control of Energy Consumption decree forces magnesium producing facilities to phase down their activity, leading to a shortage of magnesium in the world. A severe blow for germany automotive industrie who depend heavily on this chemical element, writes german newspaper WELT:
On a Monday in mid-September in Yulin County, Fugu County, People's Republic of China, the county's "Development and Reform Commission" sent out a decree. Subject: "Double control of energy consumption."
In Germany, this inconspicuous arrangement by a distant authority triggers a nervous, almost panic-like reaction. The reason: the decree temporarily prevents magnesium deliveries to the Federal Republic.
The Federal Ministry of Economics and the Foreign Office in Berlin are now dealing with the events in the Chinese province. Because the Yulin Decree threatens the supply of raw materials to the entire metal industry at a particularly sensitive weak point. There is a threat of a production stop in large German plants before Christmas.
