The GDP numbers in China include many elements that consistently overstate economic strength. It has been a specific objective of each provincial government to meet GDP guidelines leading to dramatic distortions in capital allocations to ghost cities and below cost production.
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Examples of manipulated economics within recent Chinese history, including Mao’s decision to seize and melt down steel from peasant tools and cooking ware to boost Chinese steel production figures. Chinese income and economic figures are suspect without Western standards.
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This is extended to Chinese company annual reports where it is well known 3-4 sets of creative books are maintained, none resembling honest accounting; designed for different audiences. Western investments in China do not benefit from honest accounting.
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Until international standards for rule of law, accounting, disclosure and auditing are implemented participation in Western markets should be eliminated, and organizations making investments that are required to grade risk should be prohibited from investing.
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If they cannot tell the truth on the basics imagine how opaque the details are: barrons.com/articles/the-g…
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