In the spirit of the best Soviet traditions, China’s regional authorities report on their own progress. However, prompt journalists managed to find out rather weighty nonconformities in such upbeat reports. So, media sources released the information that disclosed deliberate false figures exceeding the actual showings by $610 billion. Thus, local authorities try to put a gloss on economic data in their reports to the Central Committee of China’s communist party. The journalists compared the official statistics figures from 28 China’s provinces with the official government’s reports. The obtained deviation struck investigators. If local authorities give the right showings, the GDP should have appeared to be $610 billion more. The real state of affairs differs considerably from paper reports. Such a fraud stems from the communist principle of advancing in the hierarchy which still exists in modern China. If a farm yields high results, then its head is expected to be promoted. Therefore, officials of various ranks start to take greater merit to themselves. By the time when a report gets through the government in Beijing, it becomes foul with groundbreaking figures displaying a huge progress in the provinces. Likewise, the similar picture arises at the highest levels of power. A scientist from Shenzhen University proved that Beijing had inflated the actual GDP value by a trillion U.S. dollars. In August, China’s National statistics bureau suspended releasing manufacturing PMI. The doubtful information from the provinces accounts for PMI misinterpretation. In their turn, western banks and financial think tanks use their own statistics concerning China and do not trust the official data.
