Beijing, Aug 22 (IANS): A record-breaking drought has caused some rivers in China, including parts of the Yangtze, to dry up, affecting hydropower, halting shipping, and forcing major companies to suspend operations.

A nationwide drought alert was issued on August 19 as a long running and severe heatwave in China's heavily populated south-west was forecast to continue well into September, The Guardian reported.

The loss of water flow to China's extensive hydropower system has sparked a "grave situation" in Sichuan, which gets more than 80 per cent of its energy from hydropower.

On Sunday, the provincial government declared it was at the highest warning level of "particularly severe", with water flow to Sichuan's hydropower reservoirs dropping by half. The demand for electricity, meanwhile, has increased by 25 per cent this summer, local media reported.

Last week. the province suspended or limited power supply to thousands of factories and rationed public electricity usage due to the shortage.

Toyota, Foxconn and Tesla are among companies reported to have temporarily suspended operations at some plants over the last fortnight.

On Sunday the South China Morning Post (SCMP) reported plans to restart production this week had been postponed.

The Yangtze is the world's third largest river, providing drinking water to more than 400 million Chinese people, and is the most vital waterway to China's economy, reports The Guardian.

It is also crucial to the global supply chain, but this summer it has reached record-low water levels, with entire sections and dozens of tributaries drying up.

Water flow on the Yangtze's main trunk is more than 50 per cent below the average of the last five years.

Shipping routes in the middle and lower sections of the river have also closed, according to the SCMP report.