According to Mark Magnier’s article (Link Here), China has most likely overstated their growth rates to be a politically desirable value of 7%, which is the lowest rate in several years. However, many are doubtful of the China’s statistics and assume that that the growth rate is much lower. The first hint that makes the growth rate seem unreasonably high is the statistics that China provides do not fluctuate like in other economies, such as the United States. The second hint is that the exact methods to incorporate inflation into China’s GDP are unknown. The third hint is that the industrial production, a surrogate for growth rates, was unusually low compared to the GDP growth statistic provided. The fourth hint is that consumption, investments, and manufacturing outputs have been very weak lately. Finally, in 2007, Premier Li Keqiang – one of the Communist Party chiefs – said China’s GDP values were “man-made and therefore unreliable.”
Even though some may say that China’s National Bureau of Statistics is more professional than in the past, it seems as though they fail to provide accurate statistics. One possible factor leading to the discrepancy in statistics that is stated in the article is the exaggeration of data from local officials. Overall, the fact that China’s statistics are false is concerning. What are your thoughts on China’s faults stats? Besides China gaining too much power, I think that China's faulty stats may be another reason why China may not be included in the TPP.