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A record-setting drought crippled economic activity across southwestern China in late August, freezing international supply chains for automobiles, electronics and other goods that have been routinely disrupted over the past three years.
Such interruptions could soon become more frequent for companies that source parts and products from around the world as climate change, and the extreme weather events that accompany it, continue to disrupt the global delivery system for goods in highly unpredictable ways, economists and trade experts warn in The New York Times.
Natural disasters such as droughts, hurricanes and wildfires are becoming more frequent and these disasters are likely to wreak sporadic havoc on global supply chains, exacerbating the shortages, delayed deliveries and higher prices that have frustrated businesses and consumers.
Read more: Mississippi River Drought Imperils Trade on Vital U.S. Waterway
The drought in southwestern China has also had ripple effects for global businesses. It drastically reduced hydropower production in the region, requiring power cuts to factories and scrambling supply chains for electronics, car parts and other goods. Volkswagen and Toyota curtailed production at nearby factories, as did Foxconn, which produces electronics, and CATL, a manufacturer of batteries for electric cars.
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