China dam collapses, cross-border railway halted as Typhoon Maysak slams Guangxi

Authorities issue top flood alert, order rescue and evacuation, with more bad weather expected.

Floodwater breached the Shenzhen reservoir in southern China, threatening others in the region, as heavy rain pounded the area, forcing over 1,200 people to flee to higher ground. The reservoir's dam collapse occurred on Monday, with authorities establishing rescue-and-evacuation teams and warning residents to stay alert. Officials from the Guangxi government reported that the floodwaters had already affected over 10,000 hectares of farmland, with estimated damages of around 100 million yuan. The cross-border railway between China and Vietnam was halted due to the severe weather conditions.

The dam collapse and subsequent flooding are likely to disrupt global supply chains, particularly for metals such as copper and aluminum, which are heavily reliant on Chinese production. As a result, metal prices may soar, affecting industries such as construction and manufacturing, which could lead to increased costs for consumers. For instance, companies like Apple and Samsung, which rely on Chinese suppliers for components, may face production delays and increased costs. This could ultimately impact the prices of electronic devices and other consumer goods.

The collapse of the Shenzhen reservoir dam is not an isolated incident, as China has experienced several major dam failures in recent years, including the 2019 collapse of the Xe Pian-Xe Namnoy dam in Laos, which was built by a Chinese company. Insiders point to the country's rapid industrialization and lack of effective regulation as contributing factors to these disasters. Historically, China's dam construction has been driven by the need for hydroelectric power and flood control, with over 90,000 dams built across the country. This has led to concerns about the safety and environmental impact of these structures.

The Guangxi government is expected to announce an investigation into the cause of the dam collapse by the end of the week, with a report due to be released on September 15. The Chinese Ministry of Water Resources will also conduct a nationwide inspection of dams to identify potential risks and prevent similar disasters. Interestingly, the dam collapse may actually lead to increased investment in renewable energy sources, as the Chinese government seeks to reduce its reliance on hydroelectric power and mitigate the risks associated with dam construction.