China's Drought Crisis and How It Will Affect Your Supply Chain

China’s severe drought and month-long heat wave has led to record low water levels and a drop in hydroelectric power generation in recent weeks. Many rivers have been drying up, with the Yangtze River being hit the hardest as it is disrupting shipping routes. With China relying heavily on hydroelectric power generation, energy cuts have impacted production in multiple big city regions which are affecting numerous industries such as automotive, biotech, semiconductor, steel, and more. Many facilities are experiencing power cuts in addition to a tightening of vital commodity supplies such as copper, aluminum, steel, and more.