Make Me Smart China has an economic data problem. Is the U.S. next?
Aug 13, 2025
Jennifer Pak, Marketplace's China correspondent based in Shanghai, discusses the intricacies of reporting on China's unreliable economic data. She highlights the challenges faced by economists deciphering statistics amidst government manipulation. The conversation explores the alarming implications of eroding trust in economic data, not just in China but potentially for the U.S. as well. With 12 million graduates entering a shaky job market and doubts about the validity of GDP figures, Pak sheds light on the need for credible reporting in understanding economic realities.
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Why China's GDP Numbers Raise Skepticism
- China's headline GDP numbers are viewed skeptically because they regularly hit government-set targets.
- Some analysts still treat the series as a directional guide despite suspected local manipulation.
Rebuilding Roads To Boost Output
- Local officials inflate activity by repeatedly rebuilding projects, inflating GDP without adding real value.
- Jennifer Pak cited a running joke about officials rebuilding curved roads to boost output.
Data Disappearances Break Comparability
- The Chinese government sometimes stops publishing troublesome series, like youth unemployment, then resumes with unexplained methodology changes.
- That practice breaks historical comparability and undermines confidence in trends.