Whether one feels positive or negative about China’s economic prospects, everyone can agree that its indicators are a mess. But the fact that the data are flawed does not mean that they are deliberately manipulated to yield a particular outcome.
These distortions affect two key policy concerns that dominate public attention. One has to do with purportedly overstated gross domestic product growth rates. The other involves perceptions about China’s unbalanced growth as reflected in its extremely low consumption share of GDP and high investment share. Continue reading »