Unhappy new year for China Richard Spencer in Beijing February 2, 2008
THE effects of China's weather crisis on its economy has worsened as the devastation of winter crops added to pressures on food prices.
The heaviest snowstorms to hit the centre and south of the country in 50 years have continued to cause havoc to Chinese new year travel plans, with 105 million people affected, according to government figures.
Millions are stranded on roads, stuck on slow-moving trains or in temporary shelters around railway stations.
One hundred and fifty thousand homes have collapsed, and another 650,000 have been seriously damaged, disaster relief officials say. The long-term effects are looking equally ominous.
"The impact of the snow disaster in southern China on winter crop production is extremely serious," said Chen Xiwen, an expert on the agricultural economy. "The impact on fresh vegetables and on fruit in some places has been catastrophic."
With rising Chinese demand also contributing to inflation in food prices across the world, economists will also be calculating the international consequences.
"China is not insulated from world markets," said Adam Leyland, editor of the magazine The Grocer. "Increased demand for certain staples in China has had an effect on global prices."
Early frosts in China caused a reduction in the apple crop last year, which has contributed to a doubling of the price of juice concentrate on the world markets.
Wholesalers in Beijing reported supplies of some foodstuffs were down to one-fifth of normal levels.