TAIPEI (Taiwan News) — Power cuts in China will cause Taiwan businesses to either upgrade to more energy efficient manufacturing processes or leave the market altogether, corporations say.

Recent power cuts in China have caused many Taiwan manufacturers to halt production, causing various industry watchers to focus on whether the limits will extend through October, according to a CNA report. China is implementing its energy rationing policy in 10 key manufacturing provinces, including Jiangsu, Zhejiang, and Guangdong.

Suzhou experienced cuts from Sept. 26 through to Sept. 30. When combined with China’s Oct. 1 public holiday, there was a loss of seven to 10 working days, impacting a number of different manufacturing industries.

Overall, more than 30 Taiwan-listed companies have been forced to stop production in China. Since this is the peak production period in the lead up to Christmas and the Lunar New Year, it is proving a big test for manufacturers.

Analysts say China is experiencing shortages due to limited coal reserves and increases in emission standards. The specter of sudden shutdowns will loom large over Taiwanese businesses in China if this power gap in China is not addressed, experts said.

Investment consultants pointed out the break at the end of September will result in output delays for Taiwan businesses delivering on their orders. If the same is true in October, energy shortages could be the latest addition to a growing list of manufacturers’ woes, which include the COVID-19 pandemic, shipping freight shortages, and trouble sourcing materials.