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China’s Anti-Graft Agency to Scrutinise Statistics Office

A few regions created the “illusion of economic development” by falsifying data and some local authorities issued secret instructions to intervene in manipulating data


While the US attracted the highest amount of VC investment with $269 billion logged from October 2020 to 2021, China was second-placed with $61 billion. Photo: Reuters.

 

China will step up scrutiny of the country’s statistics agency and tackle the “outstanding problems” of data fraud and falsification, the Communist Party’s anti-corruption inspection unit said on Friday.

While the National Bureau of Statistics (NBS) has “resolutely probed” and dealt with such cases in recent years, “the problem of statistical data fraud is still relatively prominent”, the Central Commission for Discipline Inspection (CCDI) said.

The NBS publishes China’s closely watched gross domestic product (GDP) numbers, among other key data.

China has set a GDP growth target of 5-5.5% this year but economists have questioned if the country is able to achieve it amid intensifying geopolitical challenges, global commodity price inflation and a zero-Covid policy that clogs supply chains.

A few regions created the “illusion of economic development” by falsifying data and some local authorities issued secret instructions to intervene in manipulating data.

Data fraud is being found in more areas including research and development funding ratios, energy intensity and carbon intensity that typically reflects the quality of economic and social development, the anti-graft watchdog said.

Energy intensity and carbon intensity indicate the amount of energy consumed and carbon emitted per unit of GDP, and are used to gauge the progress of a country’s campaign to tackle climate change.

Inspectors from the CCDI added that some local officials prioritise economic growth and ignore other areas of economic development, or seek to show off their personal achievements through statistics.

The CCDI will carry out random inspections on data quality on a regular basis and supervise the establishment of an accountability system among local authorities to prevent and punish statistical fraud.

 

  • Reuters, with additional editing by George Russell

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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