Previously, I was a staff writer with Forbes, producing stories for its global website and magazines that covered a wide spectrum of regional topics. An estimation of 5.36 million buildings collapsed and more than 21 million buildings were damaged in Sichuan, Chongqing, Gansu, Hubei, Shaanxi and Yunnan were part of the affected area. § HISTAR plant situated in the city of YA’AN Second, great expense and resources will go into the rescue efforts, clean up, and rebuilding, and this and that means that resources will be diverted. Just two days after an earthquake in China killed over 200 people and injured almost 1,000, economists have started to weigh up the implications for the world's second largest economy. Over the last 24 hours I have been asked to give my thoughts about the impact of the quake on China’s economy, and too be honest I was working to much on emailing friends in the area to worry about it. Both comments and pings are currently closed. Big insurers could suffer from higher claims, such as the country’s largest property insurer, PICC Property & Casualty, and the two largest life insurers, China Life and Ping An. Economical Impact. Sinopec, which is developing Sichuan's Puguang field, potentially the country's biggest natural gas deposit, could see future revenues compromised (the field is expected to account for 7% of its fiscal 2010 revenue). And great, great job with the volunteer efforts. The rebuilding and healing process continues, and I hope to better understand what can be done to help the people of Sichuan recover,” Zoellick said in a press release as he was leaving for China. Intel operates a chip assembly and testing factory in Chengdu employing some 1,600 workers, having placed a bet on Chengdu’s high-tech talent pool and low-cost advantage relative to Shanghai, Beijing and Shenzhen. Measuring at 8.0 Ms, the earthquake’s epicenter was located 80 kilometers (50 mi) west-northwest of Chengdu, the provincial capital, with a focal depth of 19 km (12 mi). Sichuan Earthquake in 2008 Abstract Social capital can help reduce adverse shocks by facilitating access to transfers and remittances. In terms of events that undermine economic growth, the impact of natural disasters is huge and inevitable. http://greenleapforward.com/2008/05/20/the-energy-implications-of-the-sichuan-earthquake/. China Life Insurance shares reversed earlier losses to end 1.5% up, at 33.20 Hong Kong dollars ($4.26), while Ping An Insurance also made a turnaround to close 1.4% up, at 70.85 Hong Kong dollars ($9.08). With my kind regards The Sichuan Earthquake occurred in China on May the 12 th 2008. More worrisome for Beijing are the implications for inflation in the short term. © 2021 Forbes Media LLC. Zeping Xu, from the China Institute of Water Resources and Hydropower Research, reports on the impact … Previously, I was a staff writer with Forbes, producing stories. Bring on the Fireworks! on What Would be the Impact if the Chinese Economy Tanked? Bring on the SMOG. The Leukemia & Lymphoma Society BrandVoice, The Next Step | Small Business Video Series, Philippine Tycoon Enrique Razon’s ICTSI Posts 51% Jump In Q1 Profit, The Making Of Hong Kong’s Largest Online Landlord: HKTV, Singapore Reviews Travel Bubble With Hong Kong As Covid-19 Cases Increase, Billionaire Chairul Tanjung’s CT Corp To Receive $916 Million Investment From Mitsui & Co, Goodbye OPEC, Hello OMEC. Finally a Show Worth Watching! The largest earthquake to hit China in more than 30 years is likely to wreak great economic damage on Sichuan province and the nearby megacity of Chongqing, but not on China as a whole. Toyota said it had shut down a joint venture factory in Chengdu that was churning out 13,000 small buses and sport utility vehicles a year. any insight on that will be greatly appreciated. 97,150 people were killed and missing; a number so large that only the people who experienced it will really know how truly devastating it was. Thanks Nick – To be honest, I am sure that we are going to see a hike in raw materials. Hitachi reported damage to a small joint venture facility in the city. I just wanted to point out that I have done some quick research on the impacts of the quake on energy infrastructure, and have written about it on http://greenleapforward.com/2008/05/20/the-energy-implications-of-the-sichuan-earthquake/. Deutsche Bank and Morgan Stanley said reconstruction should provide a boost to building materials providers and construction companies, such as Shui On Cement and Anhui Conch. for me, I am going to be focused on working with agencies I know in the area to do what I can, but I think it is important that investors in China understand what the potential ripples are. Community and Economic Empowerment for Women in Sichuan Province. This is quite different from the snowstorm, which affected both Pearl and Yangtze River deltas," it said. The purpose of this research note is to give an overview of the Chinese Government's political response to the May 2008 deadly earthquake in Sichuan province. The total economic loss was estimated 86 billion US dollars. Steel, cement, metals, oil, etc.. Taking the 2008 Wenchuan earthquake as the research object, and based on the country-year data for 181 counties in Sichuan Province from 1999 to 2018, this paper uses the dynamic difference-in-difference method to investigate the indirect impact of this event on the economy. However, earthquakes and other natural disasters wreak substantial environmental damage, with consequences for human health and economy as well as biodiversity and resource availability. The earthquake has made an impact on Sichuan province and individual sectors. Allegations regarding school collapse related to corruption have also emerged in the aftermath of the 2008 Sichuan earthquake in China (Hui, 2009). In addition, rebuilding thousands of homes in a fragile region presents its own challenge to resource management and land protection. Intel spokesman Nick Jacobs told PC World that the plant was running on backup power and that it had sent its employees home till Wednesday. In China, the greatest concerns are disposal of debris, ecosystem and habitat loss, water contamination, and destruction of arable land. According to State Grid, six transformer substations were shut down, reducing power supply to the Sichuan power grid by 4 million kilovolts after a 500-KV and five 220-KV transformer substations in Sichuan were affected by the earthquake. Among those left homeless and economically vulnerable were women and women-headed households in Maoxian County, one of the poorest counties in Sichuan and largely populated by ethnic Qiang. Deutsche Bank warned that listed companies with heavy exposure to Sichuan and Chongqing include Neo China Property, Qingling Motors and Xinhua Winshare. If I hear of anything that I think is urgent from the business side, I will be sure to pass it along, but I am confident that the economic impact will be less than the recent snow storms. The disaster impact mechanisms are also decomposed to provide guidance for disaster risk management. i see that alot of solar companies are expanding in sichuan province on their polysilicon production plans. It could also have an impact on projects to tap major natural gas deposits. The Year of the Horse is here! I am actually curious if some materials like steel will be hiked, or have to be rationed given that steel was already an increasingly demanded and yet less and less in-supply commodity. Also the earth quake could be felt as far away as Beijing and Shanghai approximately 1000 miles away. It is estimated that a total amount of direct economic losses caused by the earthquake is at RMB852,309 million. I wish you and your team all the best, and keep up the great work! The most immediate concerns after such a disaster are human casualties, injury, and property destruction. The epicenter of the earthquake was in Sichuan Province. “Any possible structural damage to facilities or power cuts will heavily impact aluminium production. All Roads Lead to China: Business News, Analysis, and Insights from China. Although the output of Sichuan's industries and manufacturing sector only accounts for a small share of the national total, with the total industrial output of Sichuan province and Chongqing municipality taking up a mere 3.5% of the national total in 2006 and their export taking up only 1% of the national total in 2007, the current … http://www.resourceinvestor.com/pebble.asp?relid=42761, My name is Henri Gonse, I work in the field of aluminum foils for the capacitor industry, I jus came back from China and I am seeking information on the companies which are producing capacitor foils in the area which was hit by the earthquake : Sichuan, a southwestern province of 80 million, contributes 3.9% to China’s GDP and 2.5% of its manufacturing output; Chongqing, adds 1.6% in national GDP and 1% of national manufacturing output, according to estimates from economists at Merrill Lynch. This was due to the vulnerability of the dense populus living within the province; it was deemed unlikely even for a 7.9M quake would cause so much destruction. The small city was badly hit in the 2008 earthquake and officials said a $1.6bn copper refinery would help the economy. The earthquake had effects on people and cultural features, as well as impact on the economy … I cover regional corporates and entrepreneurs for Forbes Asia magazine as a contributing correspondent. The earthquake had a scale of 7.9, meaning it caused a very large amount of damage to the man-made environment. Opinions expressed by Forbes Contributors are their own. So, from a manufacturing perspective I do not see many industries that will see a significant impact at the 1st and 2nd tier, however where we will need to wait and see will be on the raw material front. As we saw just a few months ago, the Chinese government can quickly mobilize and recover from major catastropies and I wish them all the best in their efforts. Bites of China. Ecologists find 2008 earthquake destroyed nearly a quarter of panda habitat near quake’s epicenter. Even with the five largest cities in Sichuan suffering only minor damage from the quake, some estimates of the economic loss run higher than US$75 billion, [deprecated source] making the earthquake one of the costliest natural disasters in Chinese history. Sichuan, a proice in western China, has been historically known as “Land of Abundance” (Tian Fu Zhi Guo), as it is one of the major agriculture production bases of China. Impact of the Sichuan earthquake 13 August 2008 China’s hydro rich Sichuan Province was recently shaken by the country’s strongest earthquake for over 30 years. Sichuan is a tectonically unstable area, having suffered from 11 earthquakes with a magnitude of 7 or more since 1786. Bring on the Fireworks! Economical Impact. In Hong Kong trading, PICC slumped 3.2%, to 7.00 Hong Kong dollars (90 cents), on Tuesday. You can follow any responses to this entry through the. I cover regional corporates and entrepreneurs for Forbes Asia magazine as a contributing correspondent. Sichuan Meishan Aostar Aluminum Co. Ltd. (Meishan Aostar) and Sichuan Guangyuan Aostar Aluminum Co. Ltd., in Sichuan’s Meishan City and Guangyuan City close to Wenchuan County, are likely to be affected,” Huang Fulong, an analyst at Kaichao Investment Bank, said. The 2008 Sichuan earthquake had a deadly effect on the entire Sichuan region. Impact on aluminum production: According to State Grid, six transformer substations were shut down, reducing power supply to the Sichuan power grid by 4 million kilovolts after a 500-KV and five 220-KV transformer substations in Sichuan were affected by the earthquake. However, casualties and economic damage will be minimized by the remoteness of the region to China’s prosperous and densely populated eastern coast. Thus, economic and social impacts of both earthquakes are similar, but differ based on the intensity of each quake. energy, gas, trucks, rail, etc. Why isn’t there any reply? First, the hardest hit areas have historically developed slower from an economical perspective as they lacked the natural export markets that the cities on the east coast have. A Shift From Petroleum Power To Minerals Power, Australia Reviews Lease Of Darwin Port To Chinese Billionaire’s Firm: Report, Apple AirTag Review: Works Well, Maybe Too Well, ‘American Factory’ Owner Fuyao Glass To Raise $550 Million, Eyes Solar Market. As a result, a huge amount of money that could be used to improve other aspects of China now had to be pumped into rebuilding the properties, therefore slowing down … Deutsche Bank analysts suggested China Telecom would be the worst hit by the disaster among telecom companies as it has 10% of its fixed-line network in the region. Sichuan Earthquake happened at 2.28pm on 12 May 2008 in the Sichuan province of China. Nice post, Rich. The disaster could prove a setback to China’s bid to build up a local version of Silicon Valley in the city of Chengdu, which is 60 miles from the epicenter of the quake, as well as to the foreign companies that have set up shop there. Third, from an agricultural perspective, Sichuan is an important producer of agricultural products, particularly pork, and depending on the severity of the damage to farms inflationary pressure may increase. As the most destructive earthquake since the founding of the People’s Republic of China in 1949, the Wenchuan Earthquake that occurred in 2008 resulted in direct economic damages reached Chinese Yuan (CNY) 845 billion (US $124 billion). This article contributes to the literature on the economic effects of natural disasters by estimating the economic impacts of the 2008 Wenchuan earthquake in worst-hit area and surrounding area. June 4, 2008; HONG KONG — The powerful earthquake that … 2008 Sichuan earthquake (China) Home; About; Impacts; Impacts; Impacts & Strategies ; Videos; Bibliography; Negative impact on economy From an economic perspective, the impact of the earthquake on the economy in general is a great loss. But can someone tell me the social impacts asap….pls! By Keith Bradsher. “Approximately 46% of the country’s zinc smelting capacity lies in tremor-stricken regions, but we won’t know the extent of the damage until a detailed assessment is carried out,” a Capital Futures analyst, named Zhang Lianggui, told Interfax today. You may opt-out by. Despite the magnitude of the 2008 earthquake being 7.9, the resulting devastation was exeptionally disastrous. The earthquake … [Humans can cause deadly earthquakes: the 2008 Sichuan earthquake (Chinese: 汶川大地震; pinyin: Wènchuān dà dìzhèn; literally: “Great Wenchuan earthquake”) occurred at 14:28:01 China Standard Time on May 12, 2008. Earthquake destroyed nearly a quarter of panda habitat near quake ’ s economical.... For Forbes Asia magazine as a contributing correspondent keep up the great work said it too... Away as Beijing and Shanghai approximately 1000 miles away after such a disaster economic impacts of sichuan earthquake 2008 human casualties,,... 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