China’s freshwater shortage forewarns of macroeconomic supply chain implications

Trade & Border IssuesHot Spots
Written By Jennifer Joslyn

China’s Yangtze River, its largest waterway and the location of the nation’s biggest hydropower station, is reporting its lowest levels on record during August. The drought has been catastrophic in China as its industries suffer from energy and food shortages. Manufacturing, energy, and agriculture rely on water to keep the market strong… and a weak Chinese market signals a difficult road ahead for the rest of the world.

When Chinese investors are being squeezed, the global supply chain feels it too. China, which has often been acknowledged as a leader in manufacturing low-cost goods for companies worldwide, is now being forced to prioritize its water resources over economic growth.

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Jennifer Joslyn
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