Frequently Asked Questions
The China water crisis is serious and could impact economies around the world.
Here is a summary of our key findings.
Severe.
China has 20% of the world’s population but only 7% of the world’s freshwater resources. Even worse, North China has 20% of the nation’s freshwater, yet accounts for over 60% of China’s agricultural land and 40% of its population.
To combat a dry climate in the North, China has been drawing on groundwater reserves, and transferring water from South China to North China. Groundwater depletion is so significant that more than 50 cities in China are seeing land subsidence (sinking or settling of the land).
Water availability is critical for electricity production. Coal generation and hydroelectric dams account for more than 75% of China’s electricity output, and inadequate water levels are a key reason for widespread power outages in China this past year.
Data above from Chinadialogue.net.
Chinese firms produce a staggering portion of what Americans buy, like 40% of the clothing and 70% of the shoes sold in the US. For example, Chinese suppliers produce more than 70% of Walmart’s store merchandise.
China’s power shortfalls are directly impacting Chinese manufacturers, with many companies forced to shut production two or more days out of the week. This is a major reason why US retailers are struggling to keep products on store shelves.
China is also a critical manufacturing hub for technology companies like Apple; it’s worth noting that a modern cellphone requires 3000 gallons of water to produce.
This issue could significantly increase food prices both in the US and abroad. China imports more than $100 billion in food products each year. A long-term water shortage would likely force China to increase its food imports, putting more pressure on global agricultural supply chains. There is evidence to suggest that China’s grain reserves are in worse shape than official statistics suggest.
Food security is a major reason why Chinese entities are acquiring overseas assets. Smithfield Farms, the largest pork producer in the United States, is now owned by the largest pork processor in China (and the world), WH Holdings. Included in the purchase of Smithfield was 146,000 acres of US farmland spread across nine states.
This extends beyond the US; Syngenta, a Swiss-based producer of crop seeds and agrichemicals, was acquired by China National Chemical Corporation in 2015.
Potentially not for a very, very long time.
China is facing a twin water/power crisis, with no easy solution for either.
As water availability dwindles, it becomes difficult for China to operate coal, hydro, or nuclear generation. Wind and solar power do not require significant water resources, but also do NOT provide the kind of dependable power that China’s manufacturers need to maintain production (wind/solar output varies tremendously over the course of a year).
It’s extremely challenging for China to resolve its power shortages without access to more water, or technologies to make wind/solar power more reliable.
Desalination requires significant amounts of electric power, which is already in short supply in China. In addition, transporting desalinated water thousands of miles inland to the interior of China is not economically viable for agriculture or industry.
Decades.
Former Chinese Premier Wen Jiabao once observed that water shortages threaten “the survival of the Chinese nation.” And in 2005, the Minister of Water Resources remarked to journalists of the need to “fight for every drop of water or die”.
For example, planning officials have tried to cap the population of Beijing due to inadequate local water resources. Studies have suggested that Beijing’s natural population should be no more than 10 million people based on local water resources; Beijing’s current population is over 20 million.
China has also taken steps to secure water that may be impacting neighboring countries. China’s government has announced plans to use weather modification (cloud seeding) to increase precipitation across more than 50% of its landmass by 2025. In addition, countries downstream of international rivers passing through China are seeing major changes in normal waters flows due to new dams operating upstream.
Politics and economics.
It is politically difficult in China for local officials to sacrifice economic growth to conserve water, even when necessary. Conserving water involves painful decisions like relocating manufacturing, or raising water prices to end users. This would likely result in higher unemployment and lower disposable income in affected regions.
In recent years, China has taken modest steps to increase water prices to end users, but water prices remain well below other developed countries. This encourages inefficient usage by both agriculture and industry.
Transparency and cooperation.
Greater transparency regarding water availability is crucial, at the both the national and provincial level. Even well-intentioned policies by China’s Central government to reduce water consumption may be constrained by local decision making.
Agriculture, power generation, and industry account for the vast majority of China’s water consumption; international cooperation on developing technologies to increase water efficiency would make a huge impact on this issue over the long term.
China is not alone in facing water stress, with nearly half the world’s population already struggling with water scarcity at least one month out of the year. Solutions for China’s water shortage are needed all over the world- including the USA.
No- Americans on average consume 3x more water per person than a citizen of China. A more sustainable future starts with all of us working on solutions, not pointing fingers.
There is no shortage of tension in current relations between China, the US, and the rest of the world. De-escalation and cooperation are key to resolving China’s water crisis.