China Economy Adrift as Snow Keeps Falling

Inflation spirals as weather highlights precarious conditions
By Jason Farago,  Newser Staff
Posted Jan 30, 2008 4:18 PM CST
Chinese couple walks past a snow-covered statue of Karl Marx, left, and Frederick Engels, right, the founders of communism at a snowy park Tuesda, Jan. 29, 2008 in Shanghai, China. Coal shortages are...   (Associated Press)
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(Newser) – As more snow fell today across China, the unusual inclement weather continued to highlight how vulnerable the country's economy is to disruption. The snow has prevented deliveries of food and fuel—particularly coal—and dozens of factories remain closed. State television announced that the government would mount an "all-out war" on the weather crisis, the AP reports.

Though the storms have brought only a foot of precipitation in total, they have caused an estimated $3 billion in losses in three weeks. Dozens of buildings in Shanghai have collapsed, vehicles remain trapped between big cities, and delivery services are all but suspended. With the cost of fuel spiking, the storms have hampered an effort to combat spiraling inflation.