labels: economy - general
China revokes provinces right to declare their GDP news
19 January 2007

Chinese provincial governments can no longer provide their own regional economic growth statistics, after several provinces were found to have presented inflated growth figures.

According to Xie Fuzhan, director, National Bureau of Statistics, "Provincial survey teams have been put under the direct leadership of the NBS so that they would not encounter interference from local governments."

The total of all GDP figures submitted by all the Chinese provincial governments in 2004 exceeded the national figures released by the NBS by a whopping $334.6 billion.

Being the most important index reflecting the efficiency of provincial governments in stimulating economic growth in their regions, GDP growth is regarded as a gateway to political growth for functionaries.

Often local governments interfere with the accounting to make growth figures look better than they are. A poor statistical measurement and management system has also been increased adding to the inaccuracy.

The Chinese central government has advocated taking substantive measures to shift its focus from pursuing speed to improving the quality and efficiency of economic growth, urging officials to control GDP growth and pay more attention to the environment and sustainable growth.

China's Gross Domestic Product (GDP) grew 10.9 per cent in the first half of 2006. But all the provincial regions reported two-digit GDP growth rate in the first half, with 23 of them above 12 per cent.

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China revokes provinces right to declare their GDP