- A severe drought and sweltering heat have led to low water levels and a drop in hydroelectric power generation in China in recent weeks, causing power shortages and forcing the government to ration electricity in some provinces.
- The affected region hosts factories of some of the world’s biggest carmakers like Toyota, as well as manufacturers of auto parts that are crucial to global supply chains.
- Some experts warn that the growing water stress and intensity of droughts in China will likely cause similar and more acute crises in future, potentially causing major disruptions to the global trade in industrial materials as well as food stuffs.
Drought and power shortages worsen China’s supply chain snags 25.08.2022
