China expands compensation for flood-hit communities

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Reuters June 29, 2025

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BEIJING:

China has expanded the economic safeguards for segments of its population affected by flood control schemes in times of extreme rainfall, including pledges of direct compensation from the central government and payments for livestock losses.

In China, diverting flood-waters to areas next to rivers is a major step in managing downstream flooding.

As extreme rainfall grows in frequency, China is increasingly utilising such areas, some of which have been unused until now and have been populated by farms, croplands and even residential buildings, stoking social tensions.

According to revised rules on compensation related to flood diversions released late on Friday, the central government will now bear 70% of all compensation funds, with local governments responsible for the rest.

Previously, the ratio was to be decided based on actual economic losses and the fiscal situation of local governments.

Livestock and poultry that cannot be relocated in time before the arrival of diverted flood-waters will also be included in the compensation scheme for the first time.

Previously, only the loss of working animals could be claimed for compensation.

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