Busted again- " China gets $1 trillion boost from dodgy data: Report"

[antonius123]

China may be exaggerating the size of its economy to the tune of $1 trillion by releasing "willfully fraudulent" inflation and GDP [gross domestic product] data, according to a study out this week.
Numbers from the world's second largest economy are treated with skepticism by some economists, but this latest report has attempted to quantify the scale of discrepancy.

"There is strong evidence indicating that the rate of real Chinese GDP growth, and ultimately total real GDP, may be significantly over stated," said Christopher Balding, associate professor at Peking University's HSBC Business School, and the report's author.

Through "significant and systematic irregularities", official estimates overstate China's true GDP by 8 to 12 percent, or $1 trillion, according to Balding.

Balding looked at data from between 2000 and 2011, and found that inflation numbers had been manipulated in a way that distorted other measures such as GDP and disposable income.
"If inflation data is not accurate, or is willfully fraudulent, as appears to be the case, it will impact many other areas of economic and financial data leading to large disparities over time," said Balding. "It is disturbing that a statistical body would so obviously manipulate and produce blatantly fraudulent data."

In particular, the report focused on housing inflation data, which is one of the biggest items in the Consumer Price Index (CPI). China's booming economy has caused people to migrate from rural areas to the expanding cities, causing house prices to rocket in industrialised areas. Yet official statistics showed rural house prices increasing more than those in urban areas, said Balding.

According to the National Bureau of Statistics China, the price of private housing in rural areas grew at 1.67 percent per year on average, more than three times faster than prices in urban areas, which averaged 0.53 percent.

In addition, official statistics suggest the price of private housing in China rose by a very modest 8.14% over the 11-year period, despite a housing market boom and a quintupling in nominal GDP.
"The claim that the housing component of CPI grew by less than 10 percent between 2000 and 2011 is nothing less than comical," Professor Balding wrote.

Analysts have long-been been cautious of official Chinese data.
Qinwei Wang, China economist at Capital Economics, told CNBC that the discrepancy between official Chinese GDP data and Capital Economics' own growth indicator became more apparent in 2012.

"Since 2012, our indicator suggests the slowdown in China has been faster than what official data showed. Our data suggests that the growth of China's economy is 1-2 percent lower than official data, growing slightly above 6 percent."
Balding said he hoped his research would change the way the Chinese authorities deal with data.
"I think the Chinese leadership is really struggling with the data. I don't think they even know what is really going on within their own country," he told CNBC.
"Hopefully this paper will spur the Chinese government to come up with better statistics to see what's going on in the own country."

http://finance.**********/news/chin...-130102113.html;_ylt=A2KJ2UZIbBBSdBkAjgXQtDMD

How much is the real China's GDP according to you or your reliable source??

I bet it is still much much bigger than Indian LOL

 

[karan.1970]

then we'll have more money to invest and buy things around the world like US does,good.

 

[danger007]

How much is the real China's GDP according to you or your reliable source??

I bet it is still much much bigger than Indian LOL

yeah begger than troll..... what about J-20 rap zap dragon which going to mass production 2014, j-31 which is going to roll out 2015 and J-16 ???? if china boom it's economy like this... they will surpass USA in a Decade...

 

[Lightningbolt]

There goes the J-20. Might really need to use that bought carrier as a casino after all.

If we are cooking the books, the Americans are cooking the books far far worse. American economy is overstated by multiple trillions. That's why the regime has to go into debt to pretend to be a 'superpower'.

Going by how the Yank economy is going, no wonder the F-22 was cancelled. Or was it that its just another overhyped piece of trash that don't work (as proven by Rachel Maddow)?

 

[Lightningbolt]

Everyone nowadays seems to be after China's a$$! What's with you guys? So what if they fake everything from toys to their economic stats? This amounts to gross interference in the internal affairs of a sovereign country!

Give them a break, chaps!

We are getting stronger and surpassing the Yanks.

When you are important, more eyes are on you.

It's good to see the world crying at our rise.

It's our destiny and our birth right to rule this world.

When India becomes important and stop being an Yank vassal state, then propaganda from western mouthpieces will prop up.

 

[SirHatesALot]

We are getting stronger and surpassing the Yanks.

When you are important, more eyes are on you.

It's good to see the world crying at our rise.

It's our destiny and our birth right to rule this world.

When India becomes important and stop being an Yank vassal state, then propaganda from western mouthpieces will prop up.

Our Lordship Superior Chinese is back

 

[Sergi]

Wow !!!! If its true I must say I am impressed with the skills. Its not a simple thing to achieve something like that

But hell ya Mao started it so they already have the basic know how

 

[Flat_Top56]

There goes the J-20. Might really need to use that bought carrier as a casino after all.

Fact of the matter is, no one will ever trust anything to have come out of China, until (or unless) they reform their political system.

 

[djsjs]

Wow !!!! If its true I must say I am impressed with the skills. Its not a simple thing to achieve something like that
But hell ya Mao started it so they already have the basic know how

i already made and agreement with @timetravel in another thread that our GDP is around $4 trillion,and consider the price factor our PPP is near India.
nothing serious.we are developing country,as poor as India.we have only a few difference,such as car market scale(we 20 million and you 4 million),not big gap ,

 

[Bobby]

Well...nobody is surprised.....

 

[Guynextdoor2]

Some people say that China artificially keeps RMB low by 40%,does it mean that China's GDP should be doubled if the exchange rate adjusted to its true value?

You don't know much about this do you?

 

[+4vsgorillas-Apebane]

Indians hoping to win the race by pulling on China's leg as usual. Forget about working hard, Indians just smear their opponents while languishing beneath banana trees.

 

[Star Wars]

hearty congratulations to the Chinese ....

 

[walle]

Indians, Chinese GDP is very small.

We just out produce and out consume every other economy in the world. Next time when Indians die from malnourishment and other 1950s third world diseases, you will find some consolation in knowing Chinese GDP is allegedly incorrect.

 

[Götterdämmerung]

Fact of the matter is, no one will ever trust anything to have come out of China, until (or unless) they reform their political system.

Doesn't matter what system China will have, as long as China acts independent of the US, it's going to be demonised. How are you going to explain Saudi Arabia and other medieval despotic regimes being an ally of the US.

The EU would have been demonised long ago, if the strongest states, Germany, hasn't been subjugated by the US, infiltrated with US institutions and US soldiers stationed on our territory.