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Climate tests China's power; concern over food supplies

Friday, February 1st 2008 - 20:00 UTC
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With forecasts of more snow and ice, chaos in the transport and energy systems that has left millions stranded or without electricity and water, Chinese authorities are desperately trying to convince people the situation is under control.

Officials announced that China's worst snow storms in half a century have caused 7 billion US dollars of damage and at least sixty people are known to have died as a result of the severe weather which began three weeks ago. Authorities have ordered coal production to be increased and imposed emergency price controls, while the army is helping to clear railways and roads for the millions of travelers stranded hoping to get home for next week's Luna New Year holiday. Lunar New Year, China's biggest annual holiday, begins on February 7 and the government said 180 million people head home to be with their families in what is thought to be the largest annual human migration in the world. On Wednesday, President Hu Jintao visited a coal mine in Shanxi province to encourage miners to increase production for power plants. Premier Wen Jiabao was also on national television calling on "to clear the roads means to ensure that the main railways and highways are opened, to ensure electricity means to repair damaged power lines as soon as possible". "To comfort the public means to ensure the livelihood of the people, especially to make sure that those people stranded or delayed are provided with food, warmth and access to medical services", he insisted. But authorities have also warned that many regions of China, as a consequence of the severe weather spell which wrecked winter crops could face food shortages in the future. Zhu Hongren from China's economic policy agency said that "such a disaster has been unprecedented in terms large scale and the large areas affected. We are in a tough battle to ensure the safety of people and property and ensure economic stability". Damage to crops across several provinces has further stoked already high food prices -- a sensitive topic for the government due to inflation's potential for triggering unrest in China. A Communist Party official warned of a serious impact on crop production in the south of the country. "The impact on fresh vegetables and on fruit in some places has been catastrophic" said Chen Xiwen, adding that "if it heads northward, then the impact on the whole year's grain production will be noticeable." Analysts say the destruction of crops will drive up food prices and fuel inflation, which has already risen rapidly over the past year.

Categories: Economy, International.

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