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ZHANG: Snow, ice and freezing temperatures. Chaotic winter weather is reeking havoc on China's economy.Millions of people are suffering power cuts and water shortages in the winter chill.Analysts say the current fuel shortages in more than half of China's provinces are partially due to misplaced government policy.The state-controlled low electricity tariffs have left power generators running at a loss, with little excess funds to tackle the extreme weather.The electricty grid, a relic of earlier times, is collapsing under the pressure while limited market supplies are pushing up inflation.Transportation is also taking a hit, as China's roads, supplies and passengers are snowed under by the brutal winter weather.Zhuang Jian, Senior Economist at the Asia Development Bank predicts that the snow will have a domino effect on other aspects of the economy.[Zhuang Jian, Senior Economist at Asia Development Bank]:"I think its comparable to the 1998 flooding or 2003 SARS and the past 2 crises had a great influence on the Chinese economy, of course it was ashort term impact."Inflation in China already stands at an 11 year high, but many supplies are unable reach their destinations.While state controlled fuel prices remain low, prices not under government control are set to rise. China's economy is experiencing an inconvenient truth--when disasters such as the extreme winter weather combine with failed government policy, many are left victims at the mercy of the market.