Climate is an essential element in agricultural production, and climate change inevitably have an impact on agriculture. Assessing the economic consequences of climate change requires comprehensive assessments of the impact chain from climate to crops and the economy. In our previous study, we derived a dose‐response function to estimate the response of crop yields to climate variables through a systematic review. In this paper, a dynamic multiregional input‐output model is established to assess the economic consequences of changes in agricultural production on China's regional and sectoral levels. The results show that (1) the direct economic damage is equivalent to 1% of gross domestic product (GDP) which implies the resulting economic cascade effect (ECE) that amounts to 17.8% of China's GDP. At the end of 21st century, the ECE is −0.1% to 13.6% of GDP (negative values indicate economic gains) without considering CO₂ fertilization effect, of which the ECE in the most pessimistic pathway are equivalent to the total agricultural output in China today. (2) Regional‐level results show an uneven distribution of economic impact in China, which is related to the regional economic development. The least developed region in China experiences 2.8 to 8.5 times more ECE caused by climate change than the most developed region. (3) Sector‐level results show that agriculture is still the main affected sector, but in developed regions, manufacturing and services also bear part of the ECE.

Drought and extreme precipitation events can have major environmental and socioeconomic impacts. Yet, how drought and wetness are changing in China in the context of climate change is still under debate. Here, the standardized precipitation evapotranspiration index (SPEI) was calculated based on high-quality and more densely distributed daily meteorological observation data from 655 stations across China during the period of 1965–2017. National and regional trends in drought and wetness and their various characteristics, including intensity, duration, frequency, and percentage of area affected, were investigated at multiple timescales. We found that (1) China as a whole has undergone a significant (p < 0.01, trend significant at the level of 0.01) wetting trend, with an annual SPEI increase of 0.5 per decade from 1965 to 2017. A seasonal wetting trend was also observed, with summer being particularly significant (p < 0.01). (2) Regionally, each subregion also showed a wetting trend during the study period except for southwest China, and these wetting trends were significant in the western region of northwest China (p < 0.05, trend significant at the level of 0.05), the Tibetan Plateau (p < 0.05), and eastern China (p = 0.06). (3) Decadal trends in drought and wetness intensity, frequency, duration, and affected areas indicated that the drought events also became more severe and more frequent in the last two decades, and the areas showing drying trends were mainly located in southwest China (especially for the autumn drought) and the southwestern parts of eastern northwest China (spring drought). Our results highlight the fact that although a wetting trend was observed in most regions of China, the frequent occurrence of severe drought in southwest China and the southwestern parts of eastern northwest China still present a considerable threat to both the environment and society. Therefore, how to effectively coordinate the allocation of regional water resources to cope with drought risk under future climate change will be particularly important.