China Is Running Out Of Clean Water – Government Stresses Severity Of Looming Crisis, Plans Remedies – Will This Limit Future Economic Growth?

By Paolo von Schirach

February 17, 2012

WASHINGTON – China’s economy powers on. But the country is running out of water. This is not just an inconvenience. Unless the Chinese can find a powerful remedy, this is potentially a catastrophe. No water, or insufficient clean water supply, means much less economic growth, if any. Agriculture cannot survive without water, people in cities cannot survive and many industries will be in trouble, as they consume water and are also responsible for polluting the rest with their waste.

Authorities openly describe the problem

Interestingly enough there is no attempt to hide the problem. The authorities are now publicly recognizing the seriousness of the water crisis. Hu Siyi, vice minister of water resources, upon releasing a study that illustrates how bad China’s water outlook really is, stated that:

“The situation is extremely serious in many areas…If we do not take strong and firm measures, it will be hard to reverse the severe shortages and daily exacerbation of the water situation…If our original weak water resource management policies and methods are continued, the pressing demands for water that is needed to improve people’s livelihoods and economic development will be difficult to meet”. 

In a country in which public officials normally do not dwell on problems, this is a pretty blunt description of a water crisis that has reached dramatic proportions.

How bad is it?

But so, how bad is it? Well, according to official data, 2/3 of Chinese cities have insufficient water supplies. And do consider that since no about 50% of the total population is urban, this means that about 400 million people, more than  the entire US population, are affected. The Chinese people on average have only 28% of the water available to people in other countries. And then there are severe shortages. At least 300 million Chinese lack access to sufficient clean water.

Pollution and accidents

Besides, due to human and industrial waste regularly dumped in waterways, the existing water supply is highly polluted. According to the government, one fifth of all Chinese rivers are considered category 5 which means too toxic for any possible use.

And then there are also major accidents. A cadmium spill in the Longjiang river contaminated more than 200 miles, creating a panic. Add to all that severe drought that has occurred regularly in Southwest China for years. Insufficient rain fall has devastated agricultural production and consequently the livelihoods of millions.  More recently, it has been reported that in the Sichuan city of Zigong, over 700,000 residents lack reliable access to water.

Lack of water is an impediment to growth

Even assuming success, trying to fix this water crisis will take time and it will have a negative impact on economic development. Clearly chronic water shortages do not go well with the runaway construction boom that has been one of the main drivers of China’s impressive growth. Better water management and conservation measures will force the scaling back of large construction   projects.

In the end, it remains to be seen if more effective public policy can actually be crafted and enforced. Managing dwindling water supplies for a country of 1.3 billion people in no easy task. For China, lack of water, can become an objective “limit to growth”.

Below, a Xinhua story on this water crisis. Important to note it because it is an official statement that describes in some detail the severity of the situation. 

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“Water shortage, pollution threaten China’s growth”

Xinhua, February 16, 2012

“China faces a tougher situation in water resources in the future as demand increases amid the country’s rapid industrialization and urbanization, an official said Thursday at a press conference.

Hu Siyi, vice minister of water resources, said water shortages, serious river pollution and the deteriorating aquatic ecology are “quite outstanding” and may threaten the country’s sustainable growth.

With a population of 1.3 billion people, China now consumes more than 600 billion cubic meters of water a year, or about three-quarters of its exploitable water resources, Hu said.

“Because of the grave situation, we must put in place the strictest water resources management system,” he said.

According to the Ministry of Water Resources, the average per capita of water resources is only 2,100 cubic meters annually, or about 28 percent of the world’s average level.

About two-thirds of Chinese cities are water-needy, while nearly 300 million rural residents lack access to safe drinking water, leading to a national water shortage of over 50 billion cubic meters on average every year, Hu noted.

The ministry’s data showed that 40 percent of Chinese rivers were seriously polluted and unfit for drinking after 75 billion tonnes of sewage and waste water were discharged in 2010.

Moreover, about one-fifth of the rivers are so polluted that their water quality is rated Category V. China rates its water quality from Category I to Category V, with Category V being too toxic even to touch.

Adding to the country’s water safety pressure are ambitious development plans announced by local governments this year, which experts say will inevitably greatly increase water demand for industrial and residential use.

“Unless we take decisive and compulsory measures to stop the over-exploitation activities, the water shortage will get worse in the future,” Hu said.

To address the problem, the State Council, or China’s cabinet, unveiled a guideline on Thursday to regulate the use of water under “the strictest criteria,” capping the maximum volume of water use at 700 billion cubic meters by the end of 2030.

According to the guideline, China will work to keep its total volume of water use below 670 billion cubic meters in 2020.

Also, the government will tighten its supervision over exploitation of underground water, further protect sources of drinking water, and restore the aquatic ecological system by introducing water-use licenses and other measures.

The central government has planned 4 trillion yuan (634.9 billion U.S. dollars) of investment in water resources conservation projects over the next 10 years, of which 1.8 trillion yuan will be invested during the 2011-2015 period.

Zhou Xuewen, chief planner with the Ministry of Water Resources, said he expects investment in water conservation projects in 2012 to exceed last year’s 345.2 billion yuan, of which more than 140 billion yuan will be funded by the central government.

“It will be our top priority to ensure safe and adequate water supply for residential use,” Zhou added.”

 

 

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