Toyota and Apple supplier Foxconn are among the entities that have ceased operations in south-west China because of hydropower shortages caused by heatwaves and droughts.
Toyota has paused operations in the province from Monday through Saturday, in accordance with provincial regulations.
Foxconn, the largest contract electronics manufacturer in the world, also acknowledged that it has shut down its Chengdu plant, which produced Apple Watches, iPads, and MacBooks.
According to a government statement, Sichuan, a province with 84 million residents that generates the majority of its electricity from hydropower, announced that it would halt energy supplies to factories and other plants in a number of cities in preparation for a week in which temperatures were expected to exceed more than 40 degrees Celsius.
"So far, the impact on production has not been severe," the companies said.
According to Chinese media, electric vehicle battery manufacturer and Tesla supplier CATL closed its Sichuan factory over the same time period. The CATL did not reply quickly to a request for comment.
Dan Nystedt, vice-president of TriOrient Investments, an Asia-based private investment firm, stated, "There are many manufacturers of laptops, iPads, and tablets in Sichuan, and we've heard that the eastern region of Jiangsu is also suffering constraints."
Sichuan is also a significant center for lithium mining and solar panel manufacturing.
Approximately 20 steel mills have halted production due to power restrictions, while energy-intensive aluminum and zinc smelters have reduced output, according to Shanghai Metals Market.
The Yangtze River, China's largest and most significant waterway, reached its lowest level on record for this year last week, according to a news release from the ministry of water resources.
Since July, rainfall in the Yangtze basin has been 40 percent below average, and in some locations there have been more than 20 days without significant precipitation.
The operator of the world's largest power station, China Three Gorges Corporation, declined to comment on the impact of water shortages on its dam.
It stated on its website that it will seek policy assistance to alleviate the negative effects of "the fluctuating water influx" on its operations. The outages occur as growth slows in the second-largest economy in the world.
China's gross domestic product rose by only 0.4% in the second quarter, as its zero-COVID-19 policy, which implements lockdowns as soon as outbreaks are identified, stifled demand and shut down firms.
