Many days of torrential rains are affecting millions of people across six different provinces of southern China including Guangdong province. According to a report in the China Daily, the floods have cut-off roads, breached dikes, caused mudslides and multiple deaths. Flash floods forced nearly 1,000 enterprises to suspend production within Zhejiang province. Many airline flights at airports such as Shanghai have been cancelled or delayed.
The flooding has been described as the worst in decades, similar to what has been reported in the U.S. Midwest and Mississippi River region. Farmers have been severely impacted and the Xinhua news agency reports that annual vegetable production may have been impacted by as much as 20 percent, which is not good news for China’s consumers. There was already widespread concern regarding the rising cost of food prices and associated inflation and these floods could add more increased price pressures for food and staples. Depending on the overall impact of agricultural damage, these floods in China could also impact global prices if China has to increase imports of food and vegetables over the coming months.