The authorities in north-eastern China have discovered nearly 10,000 cases of electricity theft since the launch of a crackdown two months ago.

Officials estimate that half of companies in the service industries, such as restaurants and hotels, steal electricity, causing losses of tens of millions of dollars a year to the region's main power producer, and hindering the government's efforts to revive the economy.

Stealing electricity is becoming an increasingly common crime in China. In parts of the north-east, stolen power amounts to some 15% of the electricity used legitimately.

The thieves alter meter readings or simply attach cables to power lines and run the electricity into homes, businesses and factories. Some smaller factories are completely dependent on this source of energy, and in some places as many as 80% of restaurants and entertainment centres engage in the crime.

The authorities in Liaoming Province of north-eastern China launched a crackdown in September which revealed the extent of electricity theft in the region. The report gives no details of any legal action except for the arrest of one factory official for ordering electricians to tap into public power lines.

The widespread theft of electricity is also cited as one reason for the higher cost of power in the countryside, where electricity prices can be several times greater than in the cities.

The government is eager to reduce rural electricity costs in order to stimulate demand in the countryside for electrical goods, which in turn would help China reinvigorate its flagging economy.