Former Minister of Finance of China Lou Jiwei said the Chinese Communist Party’s manipulation of its economic data was so surreal it would be an international joke under analysis.
Lou commented on Dec. 11 after hearing about a series of economic challenges China was facing. He noted that the statistics CCP allowed to publish did not reflect any of the country’s crises. In contrast, the government portrayed that the economy was still at a “very good” stage.
Free Finance reported that consumption and investment growth have slowed in China, and the supply chain has become clogged. A lack of production factors is affecting enterprise output, including a lack of chips, electricity, cabinets, workers, and other problems.
Lou said the falsification of data by Chinese officials and companies seriously damages the implementation of the national economic plan and the financial market order.
The CCP at an Annual Economic Work Conference between December 8th and 10th stated that China’s economic development and epidemic prevention maintained its position at the top of the world. But it also acknowledges that China’s economic development faces triple pressure — shrinking demand, tight supply, falling growth expectations.
Lou Jiwei said those three pressures did not appear in China’s statistics because there was insufficient data to reflect negative economic changes. One-way data makes it harder to gauge how the government responds to the three crises.
The CCP boasted that corporate companies and other market entities were proliferating during the pandemic. It did not disclose the business registration cancellation due to a loss of business.
Then the CCP claimed it created new job openings, but whether these people would be fired after six months or slightly longer was not disclosed.
Albeit already not transparent about its economic data, the CCP continues to obscure further the rest of the world with its new data privacy law. The policy has challenged foreign entities to gather information about the Chinese economy, impede credibility procedures, and create more chances for scams.