China expands flood compensation as extreme rain triggers social tensions

China is expanding its compensation system for residents forced to give up homes and farms to flood diversion schemes, as extreme rainfall continues to displace communities and damage critical infrastructure. The move, announced late on Friday, comes amid growing public anger over the government’s practice of diverting swollen rivers into designated storage zones that often include populated farmland and residential areas.

According to Reuters, new rules from China’s State Council will see the central government cover 70 per cent of compensation payments, up from a previous formula based on local finances and actual losses “Importantly, livestock and poultry that cannot be relocated before flooding will now also qualify for compensation,” Reuters reported, noting that previously only working animals were covered.

Anger over forced flood storage

Flood diversion zones are a critical part of China’s strategy to protect cities from catastrophic flooding by sacrificing rural and agricultural land. As extreme rainfall events become more frequent, Beijing has used these areas more aggressively, fuelling resentment. During record-breaking rains in the summer of 2023, nearly 1 million people were relocated in Hebei province to make way for diverted floodwaters aimed at protecting Beijing.

According to Xinhua, eight designated flood storage areas were used in Hebei alone during that crisis. China has 98 officially designated flood diversion zones across major river basins, including the Yangtze, which supports over one-third of the nation’s 1.4 billion population.

Record rain and expanding climate threat

The urgency of these measures reflects intensifying climate risks. The China Meteorological Administration said on Friday that since early June, rainfall in the middle and lower reaches of the Yangtze has been up to double historical averages. “Thirty meteorological stations in provinces such as Hubei and Guizhou reported record daily rainfall for June,” according to the agency’s briefing, as cited by Reuters.

In Guizhou this week, one city experienced flooding described as a once-in-50-years event. Local media reported that the speed of inundation shocked its 300,000 residents and overwhelmed emergency services. As per CGTN, Beijing has pledged to relocate vulnerable populations and industries to safer zones while allocating more land for flood storage to manage such surges.

Economic toll mounts

The human and financial costs of China’s floods are staggering. According to China’s Ministry of Emergency Management, direct economic losses from extreme rainfall and flooding in 2023 exceeded 110 billion yuan ($15 billion).

And the crisis is ongoing. As reported by Xinhua and CGTN in June 2024, cumulative flood-related damage this year has already surpassed 54 billion yuan ($7.5 billion), damaging roads, railways, irrigation networks, homes, and critical infrastructure. These losses underline the immense challenge China faces in balancing the protection of its mega-cities with the needs of rural communities that often serve as buffers in times of crisis.

A social contract under strain

While Beijing’s expanded compensation scheme aims to quell unrest, it also signals the government’s recognition that forced flood diversion is politically and socially sensitive. State media commentary acknowledged that farmers have long complained about insufficient or delayed payments for deliberately flooded lands, and that including livestock losses is a long-overdue reform.

Still, experts warn that as extreme weather becomes more common, these trade-offs will test China’s social contract. By relying on rural areas to absorb floodwaters and protect urban centres, China is confronting not just a climate emergency but a deepening question of fairness: who pays the price to keep its cities safe?

(With inputs from the agencies)