Chinese Water Crisis Continues
December 14, 2022
China has been experiencing many hardships and crises that have affected the population and government. Still, nothing spells more of a problem when all of the groundwater is at a dangerously low level. As of this year, China has been experiencing many extreme droughts that had terrible effects on the levels of groundwater to the point where the major Jialing River has almost completely dried out.
This spells out catastrophe in terms of agricultural and electrical production as most of the electricity in China is powered off by hydroelectric turbines and if the water level continues to lower over time, will spell many problems in every aspect of life in China. One of those main problems is the lack of food that is going to occur due to the lack of water actually able to be used to grow grains and other foods, another problem with food shortages is that they are extremely common in China even before this water shortage even occurred. If food continues on a decline like this at this rate, many of the already starving people of China will likely die and the population will take a significant hit.
Another major problem with the water shortage is the lack of electricity to power many of the factories and equipment that require electricity. As a matter of fact, if these factories begin to shut down indefinitely due to electrical outages, the demand for products is going to dramatically increase stress as production lowers. This would imply that all of China’s trade will take a HUGE plummet as all the trade will go to their competitors. One more problem that could impact everyone on a global scale is the fact that 75% of all the PCBs (Printed Circuit Boards) come out of China which will eventually lead to major electronic device shortages which will dramatically affect the market for said devices. In other words, prices for many Chinese products will dramatically increase as production slows down due to electrical shortages.
One last main problem is how the material production for things such as construction that include, steel, lumber, and plastics will also be put to a halt if factories are shut down due to shortages in electricity. This could impact many markets in the USA alone on account of the problems with our own pricing on lumber and steel rising could rise even further if this major drought continues. If our continued reliance on the Chinese production line continues, we could be experiencing problems in American markets and extreme price spikes that would shake the US economy if we do not become more self-sustainable as a country.