Is China’s Economic Information Correct?

Is China’s Economic Information Correct?

For over a week, investors¹ have been closely watching sharp changes in share prices on China’s stock market. Some investors say the wild movements have intensified² because of concerns about the truthfulness³ of that nation’s economic reports. Critics say the reports can fool investors by presenting an unrealistically-strong picture of the economy.

An expert on China says the government is not inventing the economic information. But, he believes that the economy is changing quickly from traditional industries to services. He says the ways of measuring this new economic activity are unable to keep up with the changes.

China is the world's second-largest economy, a huge trading nation and major importer of everything from machinery⁴ to oil and other natural resources. For this reason, its economic problems affect trading partners and stock markets around the world.

Stock prices in Shanghai and overseas markets have been in the news, in part, because of fears that China's economy is not growing as fast as some investors expect.

Weakness worries investors. And when many frightened investors sell stocks, it drives down prices. The fears intensify⁵ when financial experts worry that China’s economy is weaker than the official reports show.

Ben Willis is a trader on the New York Stock Exchange.

“The Chinese economy, we thought, was growing at seven percent.  It’s probably only growing at half that. So a 50 percent reduction means you need to re-price, and that’s what you’re seeing going on in the stock markets and in the commodity markets.”

Expansion of major industries was part of economic growth in China.

Nick Lardy is an expert on the Chinese economy. He works for the Peterson Institute for International Economics in Washington, D.C. He says China is better than most developing economies at measuring industrial production, especially from state-owned businesses. But he says much of the economic growth is now coming from the service industry, which is made up largely of smaller, private companies.

"Everything from retail⁶ and wholesale⁷, restaurants and hotels, financial services, including banking⁸, insurance, securities, asset management…”

Nick Lardy says restaurants are a good example of the growing services sector⁹.

"When I first went to China, there were practically no restaurants. Now there are millions and millions of restaurants. Collecting the data on all these small firms in the restaurant business is very, very labor¹⁰ intensive. "

He adds that better, more detailed¹¹ records would help Chinese leaders make better-informed decisions on economic issues. But he says the group of workers collecting economic data in China is very small in comparison to the size of its huge, fast-changing economy. 

Words in This Story

commodity – n. something that can be bought and sold

retail – adj. relating to the business of selling things directly to a buyer

wholesale – adj. related to the business of selling things in large amounts to other businesses

restaurant(s) – n. an eating place

insurance – adj. moving the risk of a loss from one person or business in exchange for money.

securities – n. something, like stock shares, that is evidence of debt or ownership

management – n. the act of controlling and making decisions about a business or office

data – n. information

1 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

2 intensified   

v.（使）增强， （使）加剧( intensify的过去式和过去分词 )

参考例句：

• Violence intensified during the night. 在夜间暴力活动加剧了。
• The drought has intensified. 旱情加剧了。 来自《简明英汉词典》

3 truthfulness   

n. 符合实际

参考例句：

• Among her many virtues are loyalty, courage, and truthfulness. 她有许多的美德，如忠诚、勇敢和诚实。
• I fired a hundred questions concerning the truthfulness of his statement. 我对他发言的真实性提出一连串质问。

4 machinery   

n.(总称)机械，机器；机构

参考例句：

• Has the machinery been put up ready for the broadcast?广播器材安装完毕了吗？
• Machinery ought to be well maintained all the time.机器应该随时注意维护。

5 intensify   

vt.加强；变强；加剧

参考例句：

• We must intensify our educational work among our own troops.我们必须加强自己部队的教育工作。
• They were ordered to intensify their patrols to protect our air space.他们奉命加强巡逻，保卫我国的领空。

6 retail   

v./n.零售；adv.以零售价格

参考例句：

• In this shop they retail tobacco and sweets.这家铺子零售香烟和糖果。
• These shoes retail at 10 yuan a pair.这些鞋子零卖10元一双。

7 wholesale   

n.批发；adv.以批发方式；vt.批发，成批出售

参考例句：

• The retail dealer buys at wholesale and sells at retail.零售商批发购进货物，以零售价卖出。
• Such shoes usually wholesale for much less.这种鞋批发出售通常要便宜得多。

8 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

9 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

10 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

11 detailed   

adj.详细的，详尽的，极注意细节的，完全的

参考例句：

• He had made a detailed study of the terrain.他对地形作了缜密的研究。
• A detailed list of our publications is available on request.我们的出版物有一份详细的目录备索。