China’s economic statistics can’t be taken at face value. This has been well understood among economists and investors for years. The country always tries to make them look better than they really are, reporting more or less inflated numbers. It’s been said that electricity-consumption numbers better represent the state of the Chinese economy than gross domestic product (GDP). Electricity numbers are more difficult to fudge than growth rates and, hence, closer to the truth, it is believed. This tendency to make themselves look better is attributed to a combination of a variety of factors: aspiration, inferiority complex, vanity, national pride, a big ego, etc. The Middle Kingdom has to be better than it is today, Communist Party leaders think. Otherwise, they would find it difficult to impose their will on other countries, especially those in the developing world. The tendency appears to have intensified the last 10 years, since Xi Jinping rose to the leadership, succeeding Hu Jintao. Xi Jinping is a great deal more nationalistic than his predecessors in the last few decades, without much tolerance for revealing China’s negative side to the world. Announcements of key economic numbers are delayed if they are believed to offend Xi Jinping ’s disposition, and these numbers could be trusted even less than those in the past. It is anyone’s guess how much deviation there is between the official size of the Chinese economy at $17.7 trillion and whatever the reality is, assuming reported growth numbers have been inflated for years....Read more https://www.theepochtimes.com/business/costs-of-fudging-statistics-5529869