A recent China International Capital Corp. Ltd. report said the flood is actually a double-edged sword for the economy—it will put a squeeze on affected economies, but the reconstruction projects will stimulate investments and consolidate demands for steel, cement, machinery and chemicals.

Moreover, some other industries will also benefit from the reconstruction efforts, such as pharmaceutical, home appliance and textile sectors.

Recovery in progress

Stiff disaster relief efforts are already underway across the country.

Policymakers have spared no effort to alleviate the impact of the disaster and prevent further losses, said Shu Qingpeng, spokesman of the State Flood Control and Drought Relief Headquarters.

The Central Government has designated more than 2.1 billion yuan ($310 million) for relief work, and around 10.42 million people have been relocated since August 4, said Shu.

Over the next few weeks, efforts will continue to focus on protecting river embankments and reservoirs, weather forecasting, relocating victims and repairing water resource projects.

Meanwhile, the relief efforts of local governments are also yielding results. In Jilin Province, power supply was restored on August 8 to millions of homes after local electricity departments wasted no time to fix the damaged power grids. Shandong Province put in place a quick response system and had transferred 158,000 victims to safety by August 9.

In Henan Province, thousands of policemen and soldiers were mobilized to work day and night to repair the battered transport system. By August 2, of the 32 damaged trunk roads, 29 had been put back into use, accelerating aid transportation in the province.

In areas where the flood has receded, rebuilding efforts are already on the way. Dazhou City in Sichuan Province has hammered out a program to invest 2.6 billion yuan ($383.5 million) in reconstruction of airports, residences and sewerage networks this year. Dazhou was one of the hardest-hit cities in the southwest province.

In another move, Wuhan, capital of central Hubei Province, is also pulling out all the stops to heal its woes. The city has kick started a massive project to rebuild more than 4,200 collapsed houses and aims to complete the task by October 1, China's National Day.

Currently, the victims are resettled in temporary houses, and each relocated household could receive 7,000 yuan ($1,032.4) in aid, said Zhang Fuxian, Director of Disaster Relief Department of Civil Affairs Bureau of Wuhan.