The record heatwave and drought in China are stuff that will provoke the minds of scientists and environment activists.
Calls for a reduction in global carbon emissions to cool down the earth will once again dominate discussions on climate change in hopes of reversing the weather pattern.
For policymakers and economic managers, however, these extreme weather conditions present another disruption in the global supply chain—and higher inflation.
Southern China just posted its longest period of high temperatures.
They have threatened farm harvests and livestock production.
In response, China’s State Council announced a $1.45-billion subsidy for rice farmers reeling from drought conditions. Authorities have warned that the arid conditions are posing a critical threat to this year’s autumn harvest.
The Yangtze river basin from coastal Shanghai to Sichuan province in China’s southwest is the worst-affected area. This is home to over 370 million people and hosts several manufacturing hubs, including the megacity of Chongqing.
The severe heatwave has already prompted local authorities in China to ration power supply.
Shanghai and other provinces have resorted to power cuts to cope with a surge in demand and ease the pressure on river dams.
China’s weather woes will eventually curb local agricultural production and the overall economic output.
This northern Asian nation will sooner or later buy commodities from abroad to make up for the shortfall in local production.
Like the supply disruption caused by Russia’s invasion of Ukraine, China’s imports will exert pressures on global prices.
Rice prices, for instance, may increase in the global market. China’s imports will easily jack up the cost of the imported commodity.
They will crowd out the global rice market and make the price of the basic staple costlier for importing countries like the Philippines.
The extreme weather conditions in other parts of the world directly affect agricultural production.
Food security, thus, must be at the top of the economic agenda of developing countries to shield them from the adverse impact of climate change.