The Chinese government faked financial data for years, Chinese media reports.
Foreign observers have long been suspicious of China’s economic data, and those suspicions may very well be justified. The governor of Liaoning province admitted that some provincial economic figures from 2011 to 2014 were fabricated, the People’s Daily reported Wednesday.
“Many cities and counties in Liaoning province reported widespread fraudulent economic figures,” Gov. Chen Qiufa revealed at the eighth meeting of the 12th People’s Congress in Liaoning.
Some fiscal revenue data was inflated by as much as 20 percent.
Shenyang, the capital of Liaoning province, reported a fiscal revenue of $351 million in 2013; however, the actual figure was closer to $160 million. A report from the National Audit Office showed that falsified data was rampant throughout the province.
More disconcerting is that the falsification of fiscal data may not be limited to one Chinese province and could be a nationwide concern.
“It’s not only happening in Liaoning, but other provinces as well, as local governments are under pressure to show positive GDP figures,” Feng Liguo, a China Enterprise Confederation expert, told the Global Times.
Recent revelations cast doubt over China’s 2016 GDP growth report scheduled to be released Friday. The Chinese government asserts that it achieved 6.7 percent growth last year — the accuracy of such reports is questionable.
Economists and investors often use foreign proxy indexes to analyze China’s growth.
China’s economic growth has been slowing in recent years. The Chinese government refers to the slowdown as the “new normal,” regarding the deceleration as a byproduct of the country’s attempts to restructure domestic economic engines.
While these changes are jarring, the government still expects and demands high growth figures, putting pressure on provincial and local officials to perform or, at least, make it look like they are performing.
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