What will happend if Three Gorges Dam collapse? How will impact supply chains? What will happend if Three Gorges Dam collapse? How will impact supply chains? For a few weeks now, we’ve had our eye on the Three Gorges Dam, a true feat of human engineering, and the largest hydroelectric dam in the world. The Three Gorges Dam generates 2% of China’s electricity, and that’s remarkable, but it’s not why we’ve been watching the dam. China has experienced a lot of rain lately. And even though it’s very hard to know what’s actually happening with the dam and what the risks are, folks have been worried about what all that rain could do. First of all, if the dam were to break, a lot of people would die very quickly — within hours. Then, the resulting flood would devastate China. It would also have a significant impact on the rest of the world’s already-weakened supply chains. So this is a risk that’s worth keeping an eye on and taking a few extra precautions for. Here are the highlights, Food prices and food security are already a problem as a result of the flooding in China. We’ll likely feel those ripple effects here. The actual collapse of the dam would devastate a critical part of many global supply chains, resulting in massive shortages of many categories of goods. Impact on supply chains and the world’s economy. We don’t ring the alarm when just any river floods, or looks like it’ll flood. But the Three Gorges Dam isn’t situated in just any river. Some economists estimate that if the Yangtze River basin were its own country, it’d have the third-largest economy in the world. So if the dam breaks and the basin floods, the whole world would feel the impact.