Chinese Companies Forced to Falsify Data, Government Says

[Ganges Zephyr]

China’s statistics bureau said local officials forced some hotels, coal miners and aluminum makers to report false numbers, highlighting flaws in data tracking the world’s second-largest economy.

Statistics officials in Hejin city in northern Shanxi province gave companies “seriously untrue” numbers to submit for 2011, the Beijing-based National Bureau of Statistics said in a statement on its website dated March 12.
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Factory workers in China. Photographer: Forbes Conrad/Bloomberg

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March 16 (Bloomberg) -- Richard Falkenrath, a principal at the Chertoff Group and a Bloomberg Television contributing editor, talks about the rise in corporate espionage by China. A large number of corporate spying cases involving China have come to light recently as the U.S., along with Japan and the European Union, have filed a formal complaint to the World Trade Organization over China’s unfair trading practices, Bloomberg Businessweek reports in its March 19 issue. Falkenrath speaks with Erik Schatzker and Sara Eisen on Bloomberg Television's "InsideTrack." (Source: Bloomberg)


Discrepancies between national and local numbers for gross domestic product indicate the task that remains for officials seeking to bolster confidence in the statistics system. So far, steps have included crackdowns on leaks of market-moving numbers and direct online reporting of data by companies to limit opportunities for provincial officials to massage the numbers.

“The national bureau is demonstrating its resolve in improving the nation’s data accuracy but it has a long way to go,” said Lu Ting, a Hong Kong-based economist at Bank of America Corp. In general, national-level data from the bureau is “more trustworthy” while local numbers “need a closer look.”

The bureau urged regions, departments and individuals to learn a lesson from the Hejin case, without commenting on the frequency of such incidents. It also urged statistics officials to not violate laws and regulations.
Numbers Don’t Add Up

Layers in the data collecting system have added to inaccuracies and discrepancies. In 2011, the 31 provincial-level governments reported a combined GDP of 51.8 trillion yuan ($8.2 trillion), 4.6 trillion yuan higher than the national figure calculated by the statistics bureau, the state-backed Economic Daily reported in February.

The bureau last month started using a unified system to directly collect output, retail sales and investment data from 700,000 companies, to boost accuracy and reduce manipulation, agency head Ma Jiantang said Feb. 14. Any tampering or falsification will be treated “seriously,” Ma said.

The NBS has notified the Hejin government of irregularities and the officials responsible are being “dealt with,” according to the March 12 statement. In a separate release dated Feb. 21, the bureau said officials in Yongchuan district, Chongqing, had interfered in companies’ data reporting in November.

Last year, China jailed two officials for leaking classified economic data in its highest profile crackdown on selective disclosure linked to insider trading.
Secret Information

Wu Chaoming, a researcher with the People’s Bank of China was sentenced to six years in prison for willfully revealing secret information to 15 people in the securities industry, Li Zhongcheng, a state prosecutor said in October. Sun Zhen, a former secretary in the country’s statistics bureau, received five years on similar charges.

The government began public efforts to combat the challenge of leaks in April last year and in July brought forward the monthly release dates for some figures to reduce the chance of early disclosure. Some of those who disclosed information got “handsome” lecture fees for speaking to securities brokerages, while others traded stocks for profit, said Du Yongsheng, a spokesman for the National Administration for Protection of State Secrets.

Chinese Companies Forced to Falsify Data, Government Says - Bloomberg

LOL, Why China is in so much hurry????

 

[JayAtl]

If you have followed my posts , I've been saying that majority of the stats and data are made up junk and lies to show them in a good light. They have no free press to challenge the govt's claims. They have a brainwashed populous that see's their govt as the messiah of truth and highly funded 50 cent army as we see here.


China is known to taint data by influencing and rigging the sample pool. Take their claim for having the highest IQ. On the day of test they submit only their best minds to take the test. That does not give us the countries average now, does it?

China has the opposite problem of democracies, although they can get stuff done faster, like build a building in 15 days. They are susceptible to making it low quality when a small earthquake will make it crumble down becuase of lack of regulations or oversight. It is frustrating with the pace of how things get done in democracies vs. china. China on the other hand are susceptible to making highly risky bets. Citizenry has no voice or right to question them on major buy in's- let alone know what the hell is going on.

 

[karan21]

it is a country made by debts and will be destroyed by debts. its another america and japan in the making.

 

[Splurgenxs]

^^debt is not a bad thing if u keep it manageable and implement on growth.

IT roughly translates tht a country is pushing for faster development that its current pocket allows.

the point here is tht China may be facing some sort of major or minor crisis and by falsifying there data in addition to there glorious foreign diplomacy ;could very well spell disaster for foreign Investor confidence..

 

[ChinaToday]

hahaha very good news , we have been able to fool indians here with faked data, we scared the hell out of india with faked GDP and milltary spending and managed to fool the world to an extend every one is predicting we are going to over take america as the world biggest economy in 2030 .

If you have followed my posts , I've been saying that majority of the stats and data are made up junk and lies to show them in a good light. They have no free press to challenge the govt's claims. They have a brainwashed populous that see's their govt as the messiah of truth and highly funded 50 cent army as we see here.


China is known to taint data by influencing and rigging the sample pool. Take their claim for having the highest IQ. On the day of test they submit only their best minds to take the test. That does not give us the countries average now, does it?

China has the opposite problem of democracies, although they can get stuff done faster, like build a building in 15 days. They are susceptible to making it low quality when a small earthquake will make it crumble down becuase of lack of regulations or oversight. It is frustrating with the pace of how things get done in democracies vs. china. China on the other hand are susceptible to making highly risky bets. Citizenry has no voice or right to question them on major buy in's- let alone know what the hell is going on.

hahaha most of your posts is full of bs china is a head of india for atleast 30 years enough said

 

[ChinaToday]

it is a country made by debts and will be destroyed by debts. its another america and japan in the making.

another 81iq post if america is that bad why there are so many illegal indian imgrants still living in america?

 

[gpit]

If you have followed my posts , I've been saying that majority of the stats and data are made up junk and lies to show them in a good light. They have no free press to challenge the govt's claims. They have a brainwashed populous that see's their govt as the messiah of truth and highly funded 50 cent army as we see here.

I indeed follow some of your cr@py posts. Most of which are garbages with twisted thinking from a crooked mind.

In fact, you look like the most brainwashed one by your lying democratic media. You, while showing unconcealable gleefulness at Chinese 10,000+ a year riots, now say “They have no free press to challenge the govt's claims”. It might be that your bi-polar disorder is recurring again, but it could also be your grossly undereducated background causing your self-conflicting, self-confusing mentality.

China is known to taint data by influencing and rigging the sample pool. Take their claim for having the highest IQ. On the day of test they submit only their best minds to take the test. That does not give us the countries average now, does it?

Ok, now let’s turn a page and see how democratic India fakes their GDP data with their low IQ to make 3.65% growth to 8.8% growth
Ground Reality: Growth Fiction: India and China in race to fake GDP
Govt went wrong in calculating one of the GDP figures: Mospi - Economic Times

How about fakeness in India “fake encounters”? UP tops 'fake' encounters list, Manipur second - Times Of India

China has the opposite problem of democracies, although they can get stuff done faster, like build a building in 15 days. They are susceptible to making it low quality when a small earthquake will make it crumble down becuase of lack of regulations or oversight. It is frustrating with the pace of how things get done in democracies vs. china. China on the other hand are susceptible to making highly risky bets. Citizenry has no voice or right to question them on major buy in's- let alone know what the hell is going on.

Let me tell you brainwashed narrow mind again: it has nothing to do democracy or no-democracy, and democracy is not a hunky-dory talisman. Rather, it has much to do with tradition and education.

Chinese low quality products flood the whole world, including India. The only conclusion is that low quality people love low quality products. Those low quality people are more abundant in India than anywhere else, including sub-Saharan Africa.

What the hell is going on is that a “democracy”, presumably full of regulations or oversights, sees its own children killed of hunger by 2 million a year every year. That hell is not for the Chinese children, where fanatics see no regulations, nor oversights.

 

[Aramsogo]

^^^^^^

Nobody here follows JayAtl's posts. When he's not banned here, he works at a 7-Eleven store in Atlanta. Ask him about the 2 for 1 donut special, not the Chinese economy. Just read his posts, 85 all the way.

 

[sweetgrape]

In China, many people are not accustomed to ask for invoice after consuming, Which let many companies and hotels save the tax, and pull the GDP down!!

 

[Solomon2]

Extrapolating from the previous sniffs of Chinese students I suspect they'd say this is a "Shanxi" issue, not a "China" one.

When he's not banned here, he works at a 7-Eleven store in Atlanta.

No shame in that. Where 7-Eleven exists, there you find civilization. What would life be like without Slurpees or the ability to pick up a quart of motor oil in the middle of the night?

 

[gpit]

^^^^^^

Nobody here follows JayAtl's posts. When he's not banned here, he works at a 7-Eleven store in Atlanta. Ask him about the 2 for 1 donut special, not the Chinese economy. Just read his posts, 85 all the way.

Buddy, when I was a kid, I found it was very amusing to see a cat playing with a rat.

The cat would flip-flop the rat, kick its fat @ss, toss it to the air, squeeze its intestines, knock at its nose, punch at its brainless head, and of course sink the teeth into the its meat from time to time.

JayAtl is the dead rat, to be played by us the cats.

Back to the topic.

I think China’s GDP is grossly underestimated, especially in the service sector. One reason is that when the company distributes gifts to its employees, no calculations on the value, no tax on it. The employees just happily carry them home and enjoy. The other is mentioned by Sweetgrape above. We haven’t talked about black market such as underground banks, which is abundant in economically more developed provinces, with many trillions in Yuan in value.

 

[somebozo]

hahaha very good news , we have been able to fool indians here with faked data, we scared the hell out of india with faked GDP and milltary spending and managed to fool the world to an extend every one is predicting we are going to over take america as the world biggest economy in 2030 .



hahaha most of your posts is full of bs china is a head of india for atleast 30 years enough said

America managed to fool the whole world and their own people by their bogus banking industry and debt fueled growth until the bubble eventually burst. I think fooling the world is a right reserved only for democratic countries. Communist countries should resort to full honest fair and unbiased.

MOD EDIT


The photo response is priceless as well.

 

[JayAtl]

To show us pictures of some rare mishaps in the history of this country that too after decades and decades of it being built, may tickle your fancy, but lets be honest our infrastructure was not the reason for 100,000 people dying - not does it fail in ways like every other year.

Then To show pictures of India's age old railway system failing after 70 years and compare it to brand spanking new rail systems failing in China is absurd.

I fully expect the seditious Chinese we unfortunately have and the other Chinese to belittle, make racist comments and attacks but here are the facts and links ( snippet) and it does even speak of ghost cities.

According to Lang, the Chinese regime is in a serious economic crisis and on the brink of bankruptcy. He even goes so far as to speculate every province in China is like Greece.

Government Censorship

“The restrictions Lang placed on the Oct. 22 speech in Shenyang City, in northern China’s Liaoning Province, included no audio or video recording, and no media. He can be heard saying that people should not post his speech online, or ‘everyone will look bad,’ in the audio that is now on Youtube,”



Lang assessed the Chinese regime to be bankrupt on the the basis that debt was too high (36 trillion yuan, or $5.68 trillion US), and taxes are too high (he assessed the individual tax rate to be at 81.6%).

He also says the regime’s officially published GDP of 9% is a fabrication, and that according to his calculation is actually decreased 10%. In addition, the officially published inflation rate of 6.2% is false. According to Lang the real inflation rate is 16%.

Behind closed doors Lang advised that under China censorship he would not be allowed to pronounce his views, although he claims it is all based on fact.

He is reported to have said: “The media cannot report anything at all. Those of us who do TV shows are so miserable and frustrated, because we cannot do any programs. As long as something is related to the government, we cannot report about it.”

Support for Lang
Lang’s speech has received support from several commentators. For example, Professor Frank Xie at the University of South Carolina, doesn’t believe the official figures produced by lower level officials and believes it entirely plausible China’s economy is in recession.

Cheng Xiaonong, an economist and former aide to ousted Party leader Zhao Ziyang, says there is enormous waste and corruption in China, and money is not properly spent on quality-of-life systems such as education, welfare and healthcare.

“Cheng says that for the last decade the Chinese regime has accumulated its wealth primarily by promoting real estate development, buying urban and suburban residential properties at low prices (or simply taking them), and selling them to developers at high prices,”

http://www.defence.pk/forums/world-...ssor-censored-saying-china-economy-troub.html
http://www.defence.pk/forums/world-affairs/166186-hopes-chinese-democratic-reform-dashed.html
http://www.defence.pk/forums/world-...-tv-chief-journalists-propaganda-workers.html
http://www.defence.pk/forums/world-affairs/145680-chinas-pollution-data-shrouded-official-fog.html

 

[shuttler]

In China, many people are not accustomed to ask for invoice after consuming, Which let many companies and hotels save the tax, and pull the GDP down!!

Not common for buz travellers who need to claim back their expenses paid on their companies behalf. I don't think there is a large impact for these practices on the gdp.

 

[Black Widow]

chinese govt is manipulative. No one believe on china claim as there is no independent source to verify it.