Global warming parches China

Currently, Poyang Lake faces a lot of impediments such as the construction of dams along the river, especially at the Three Gorges, which the government declared caused "an environmental catastrophe." China's river also has to deal with the extra burden brought by the government's south-to-north diversion project, under which water will be transferred to the parched north.

Reports from the official Xinhua News Agency show that 100,000 people around the lake are suffering from shortages of drinking water. With the current state of affairs in China, it is tough to really tell just how bad things have really gotten. Journalists are definitely not encouraged to find out too many things about the current situation. One journalist asking how the local government managed the crisis was told by an official that it was "taking all kinds of measures." Sadly, there really is no telling just how bad the situation has become.

The effects on local villagers could be even worse than expected. Studies have discovered some connections between hydrological changes to Poyang Lake and a potential increase in the number of snail-fever cases. According to state media reports, 100,000 people are affected by the debilitating disease in Jiangxi.

Looking ahead, officials expect even more difficulties this year as low crop yields could drive up inflation. According to the State Flood Control and Drought Relief Headquarters, the current drought has been the most painful in a decade. The State Council also warned last month that China will have used all its available water supplies by 2030.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.