*This is not financial advice. All content should be considered opinionated. We are not responsible for any of your gains and losses. I am neither a licensed nor registered financial expert. Please see a financial advisor before making investment decisions.

*This is not financial advice. All content should be considered opinionated. We are not responsible for any of your gains and losses. I am neither a licensed nor registered financial expert. Please see a financial advisor before making investment decisions.

The nation of China has been hit hard with so many things in 2020 so far. 

First, the coronavirus forced the country to go into lockdown. With many nations thinking that China created the virus and allowed it to escape, anti-Chinese sentiment has been growing. 

Then, the clashes between the Chinese and Indian military at the border have led to India banning many Chinese services from operating and has created a huge boycott against Chinese-made goods and services, hurting Chinese business in the process. 

Currently, heavy rainfall has forced the operators of the Three Gorges Dam to release water into villages and farmland as the dam couldn't handle the pressure. 

With the huge floods occurring in China, many are concerned that a lot of businesses and factories will be destroyed. While food prices will rise as the nation lost acres of farmland, according to Fortune, the floods will provide minimal impact. That's because China has been prioritizing the protection of its factories and cities for years as it invested heavily in its infrastructure. Meanwhile, the lack of focus on protecting their farmland has resulted in acres of farmland to be destroyed. 

China doesn't rely on its agricultural industry for economic growth, it relies on manufacturing and technology. Having their main driver of economic growth protected from these floods will continue to ensure China's economic dominance. Even if most of China's farmlands are destroyed, China has been a leading importer of agricultural goods. If China can continue to maintain its wealth, then it can continue to feed its people through imports.

Some are concerned that Chinese insurance companies will report huge losses from the flooding. Because farmland isn't as valuable as the many other property types in China, the losses these insurance companies will face will be a lot less than many think. Also, the amount of people affected by the floods isn't that much as the rural population isn't that big. Most people live in cities anyway.

Altogether, the flooding created by the strong rainy season won't be a bearish catalyst for China. China is a big nation and since its main economic driver is protected from those floods, China will continue to exhibit immense growth in its GDP and even in the stock market. If the infrastructure that was built to protect the cities and industrial centers do get destroyed from the floods, then that's when we'll need to dive deep into the damage report. 

In the meantime, China is continuing to work hard in recovering economically from the coronavirus pandemic and hopefully, they won't experience a surge in cases as they slowly reopen the economy.