Saturday, June 23, 2012

Chinese Economic Data Is Looking Terrible (And The Gov’t Is Totally Lying About It)

It's long been believed that China's economic data is untrustworthy, but now that the Chinese economy is clearly cooling down, that theory is being put to the test, and it seems to be confirmed that the government isn't always forthright about the numbers.

Keith Bradsher at the New York Times has a good overview of the situation. He notes that in addition to there being an economic slowdown, this is a year of political transition, which further creates pressure on folks at all levels of government and in state-owned-enterprises to juice up the data.

“The government officials don’t want to see the negative,” so they tell power managers to report usage declines as zero change, said a chief executive in the power sector.

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