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CCP Internal Document Reveals Huge Economic Loss in Chinese City Flooded to Save Political Centers

After record rainfall hit Beijing, Tianjin, and parts of surrounding Hebei Province last week, the Chinese communist regime deliberately diverted floodwaters to nearby areas in Hebei province to protect the capital of Beijing and new political hub Xiong’an, causing cities, villages, and vast farmlands to be submerged in rapidly rising water. The estimated economic loss of the Chinese state-owned tech companies is astronomical, according to a Chinese Communist Party (CCP) internal document obtained by The Epoch Times in recent days.
CCP Internal Document Reveals Huge Economic Loss in Chinese City Flooded to Save Political Centers
This aerial view shows a flooded village after heavy rains in Zhuozhou, Baoding city, in northern China's Hebei province on August 2, 2023. (Photo by Jade Gao / AFP) Photo by JADE GAO/AFP via Getty Images
Alex Wu
8/13/2023|Updated: 8/14/2023
0:00

After record rainfall hit Beijing, Tianjin, and parts of surrounding Hebei Province last week, the Chinese communist regime deliberately diverted floodwaters to nearby areas in Hebei Province to protect Beijing and new political hub Xiong’an, causing cities, villages, and vast swathes of farmland to be submerged in rapidly rising water.

Among them, Zhuozhou city and nearby areas were hit the hardest. Besides the immeasurable loss of life, property, and livelihood, the diverted floods have also destroyed large scale high-tech industrial parks in the area. The estimated economic loss to the Chinese state-owned tech companies is astronomical, according to a Chinese Communist Party (CCP) internal document obtained by The Epoch Times.

Zhuozhou city has a provincial-level economic development zone, which includes the Jingnan Economic Development Zone, High-tech Industrial Development Zone, and Songlindian Economic Development Zone, according to a report by Chinese state media outlet Global Times on Nov. 16, 2021. Many central governmental organizations and large state-owned enterprises have already set up their branches and sub-companies in Zhuozhou. They have been hit hard by the floods, according to the document.

A flooded street after heavy rains in Zhuozhou, in northern China's Hebei Province. (AFP via Getty Images)
A flooded street after heavy rains in Zhuozhou, in northern China's Hebei Province. AFP via Getty Images

The internal document, dated Aug. 7, is an incomplete data form of the estimated economic losses of some enterprises in the development zone.

The notes on the data form indicate that because some projects are still submerged in floodwaters, some of which are as deep as 20 feet, and some aren’t accessible because roads have been destroyed, the relevant losses are only estimates and the specific losses can’t yet be verified.

CCP State Enterprises Suffered Huge Losses

Among the recorded enterprises, China Shipbuilding Industry Corporation (CSIC), a military enterprise that manufactures aircraft carriers, suffered the biggest loss. Six of its subcompanies and projects lost equipment and property worth hundreds of millions of yuan.

The construction project of the China Power Research Center in the China Shipbuilding Industry Marine Equipment Science and Technology Industrial Park suffered a loss of 10 million yuan ($1.38 million) according to preliminary estimates.

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The initial estimated loss for the Zhuozhou CSIC 612 project was 6.15 million yuan (about $850,000).

In the construction project of the commercial complex of Zhuozhou Marine Equipment Science and Technology Industrial Park of CSIC, the preliminary estimated losses came to about 25.2 million yuan ($3.48 million).

The construction project of the residential area of Zhuozhou Marine Equipment Science and Technology Industrial Park of CSIC had a preliminary estimated loss of 205.5 million yuan ($28.4 million).

In the first section of the photoelectric technology industrial base construction project of Zhuozhou Marine Science and Technology Industrial Park of CSIC, the initial estimated loss was 60 million yuan ($8.3 million).

And the first phase construction project of Zhuozhou Industrial Base of CSIC Zhuozhou Great Wall Information Technology Co., Ltd. has a preliminary estimated loss of 50 million yuan ($6.9 million).

Other companies that suffered large losses include the Zhuozhou Base of China Iron and Steel Research Institute, with a preliminary estimate of 104.3 million yuan ($14.4 million); Tianbao Smart Science and Technology Park, with a preliminary estimate of 40 million yuan ($5.53 million); and Beijing Aerospace Sanfa High-Tech Co., Ltd. Xinrui Electromechanical Zhuozhou Branch, with an estimated loss of 150 million yuan ($20.7 million).

People clean muddied items outside a store after the rains and floods brought by remnants of Typhoon Doksuri in Zhuozhou, Hebei Province, China, on Aug. 7, 2023. (Tingshu Wang/Reuters)
People clean muddied items outside a store after the rains and floods brought by remnants of Typhoon Doksuri in Zhuozhou, Hebei Province, China, on Aug. 7, 2023. Tingshu Wang/Reuters

The Inspur Group has lost an estimated 53.12 million yuan ($7.34 million) due to the floods at its big data service center project in the Zhuozhou High-tech Industrial Development Zone. The project has a total investment of about 1.8 billion yuan ($249 million) and a total construction area of 4.6 million square feet, according to mainland Chinese news portal Sohu.com.

The Epoch Times called some enterprises in the Zhuozhou economic development zone on Aug. 10. Their phone lines were either busy or the calls were transferred to an auto-response. The call to the construction project of the residential area of Zhuozhou Marine Equipment Science and Technology Industrial Park of CSIC was connected, but staff hurriedly hung up upon learning it was a media outlet calling.

Dongping (alias), an insider in the CCP system in Zhuozhou, told The Epoch Times on Aug. 10 that the water in the development zone went down the same day and that part of the silt was cleared. Now, the villages and towns are being hit hard by the flood. Also, it’s known that PetroChina has an engine compound in the development zone, which suffered a loss of 800 million yuan ($110.55 million).

“The largest company here is PetroChina, and they’re large tax revenue contributors,” Dongping said.

PetroChina’s losses aren’t listed in the incomplete economic loss data form.

Zhuozhou’s Advantage Over Xiong'an

Dongping said that one of Zhuozhou’s advantages is that it has a high-tech development zone, mainly because Zhuozhou is very close to Beijing, which is convenient for scientific researchers. For example, the important servers of some large CCP central government-owned enterprises are placed there, as are their R&D departments.

“[Zhuozhou] is very close to the headquarters of the companies, and the ... conditions here are much better than Xiong‘an, and the supporting facilities are relatively good. Everyone is willing to come here instead of Xiong’an. Xiong'an is far away, the supporting facilities are lagging behind. It’s less than an hour from here to Beijing.”

A map of the flooded area around the Chinese capital, Beijing (Julia Jiang/The Epoch Times)
A map of the flooded area around the Chinese capital, Beijing Julia Jiang/The Epoch Times

Xiong’an is CCP leader Xi Jinping’s planned new political hub. Situated between Beijing and Xiong’an, the city of Zhuozhou and its nearby areas—home to about a million people—were subsequently flooded as authorities decided to sacrifice the regions as a “flood containment zone.”

Wang Weiluo, a hydrology expert based in Germany, told The Epoch Times previously that the CCP’s flood control is based on its political needs.

“[The CCP’s] entire flood control design is not focused on the safety of people’s lives. The main urban areas of Beijing or Tianjin, where the central government is located and the newly built Xiong’an New Area are the focus of its protection,” Mr. Wang said.

Ning Haizhong and Luo Ya contributed to this report.
Alex Wu
Alex Wu
Author
Alex Wu is a U.S.-based writer for The Epoch Times focusing on Chinese society, Chinese culture, human rights, and international relations.
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