How a Three Gorges Dam collapse (or more flooding) could impact supply chains

Over the past couple of weeks, the Three Gorges Dam has been on our radar. Known as one of humanity's most impressive engineering feats, it stands as the largest hydroelectric dam globally. While it provides 2% of China's electricity, that's not the primary reason we've been paying close attention. With recent heavy rains in China, concerns have grown over what impact all that water might have on the dam. If the dam were to fail, the consequences would be catastrophic. In a matter of hours, countless lives would be lost. The ensuing flood would wreak havoc across China and significantly disrupt the already fragile global supply chains. This isn't just a local concern; the entire world could feel the ripple effects. This is a risk worth monitoring closely. Here's a quick overview: - Food prices and food security are already under pressure due to flooding in China, and we may soon see these impacts elsewhere. - A dam failure would cripple a crucial segment of global supply chains, leading to severe shortages of various goods. - Financial markets would experience significant turbulence following such an event. - Access to reliable information about the dam's condition remains limited due to tight government control. - If you haven't already, consider adjusting your preparedness strategies to account for potential supply chain disruptions and rising food costs. This situation adds urgency to those efforts. The Yangtze River basin, where the Three Gorges Dam is located, is vital to the global economy. Economists estimate that if the basin were a standalone nation, it would boast the third-largest GDP in the world. Over half of China's manufacturing output occurs within this basin, including major production hubs for brands like Apple, Walmart, and Nike. These industries have faced challenges from previous supply chain disruptions, and any flooding would exacerbate those problems. Wuhan, ground zero for the pandemic, also lies within the Yangtze basin. Its strategic location underscores how interconnected the region is to both regional and global economies. In conclusion, the Yangtze River basin isn't just important—it's essential. Understanding its role helps us appreciate why maintaining the integrity of the Three Gorges Dam is so critical.

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