Where Is All the Rain?

Related entries: Environment, General, News

Recent news about north China’s drought may be filling the headlines, but the story is hardly new (see our post “Where Is All The Water”, from 2006, here). The latest, worrying installment of the water story is outlined here by Bloomberg:

    “China’s worst drought in five decades may persist into March, with the dominant weather pattern across the nation’s north not expected to change in the near term, the China National Grain and Oils Information Center said.

    About 153 million mu (10.2 million hectares) of all crops are affected, the center said today in an e-mailed report, an estimate that’s in line with a Feb. 6 figure from the Office of Flood Control and Drought Relief Headquarters. The information center is a state-affiliated agency that provides crop data.

    Persistent dry weather in the nation’s main wheat-growing regions may buoy Chinese and international prices, and hamper China’s bid to boost rural incomes even as it fights the impact of the global recession. Policy makers have for the first time classed the drought as a so-called level-one alert.”

    “Wheat’s potential damage has set an unfavorable overture for this year’s crops,” said Li Zhao, a manager at Yongan Futures Broker Co.”

While some short-term measures, such as cloud seeding may help – along with large-scale diversions and irrigation China’s need for a long-term solution to its water demand and supply imbalance is only getting bigger. As a result, the environment will continue to grow as a political and economic issue at home, and as a focus for investment.

One Response to “Where Is All the Rain?”

  1. Archive » Briefly…Top Ten Tweets (From RMB Manipulation, Protectionism & Princelings, To ODI, FCPA & Autos)| China Business Blog Says:

    […] As we have previously noted, China has some serious environmental issues, as well as a water shortage. This is just the latest in a long line of […]

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