China's GDP Contribution Rate, A Confusing Concept

Follow us on TWITTER: http://twitter.com/cnforbiddennews Like us on FACEBOOK: http://www.facebook.com/chinaforbiddennews Recently, the RMB has experienced devaluation. China's State Council Information Office (SCIO) released the first white paper on "China's foreign trade". Officials from the Commerce Department claimed that China's proportion of global GDP has kept increasing, with its current contribution rate to growth exceeding that of the USA. Economists refuted that China's economy started from a very low basis. It is impossible to exceed the contribution to the global economy from that of other developed countries. The Chinese Communist Party (CCP) is confusing the concepts to mislead Chinese people. On Dec.7, the SCIO released its first white paper on "China's foreign trade". An official from the Commerce Department claimed on a news conference that China's accumulative contribution rate to the global economy was over 20% from 2000 to 2009, exceeding that of the USA. The economist Xie Tian said that what the official from the CCP reported sounded like China had contributed 20% of the global economy, which was not the case. Xie Tian said: "As a poor developing country, its growth began from an extremely low basis, and so growth seemed to be fast as a result. So this number does not refer to its contribution to the global economy, but to economic growth. This official deliberately confused these two concepts, creating an illusion that China has contributed more than the USA to the global economy. China only has an economy of 4 to 5 trillion USD. How could it exceed the 15 trillion USD economy of the USA? It is not the case at all." The State Statistics Bureau released China's GDP figures for the first half of 2011 as being 20 trillion yuan, with a 9.6% growth rate. Soon after, it was revealed that many local governments exaggerated their figures by 2 trillion yuan in total. China's GDP thus became of some amusement to the world. Xie Tian: "The GDP claimed by the Chinese government is definitely fake. The real growth rate, according to many economists might be only 3 to 4% or even lower, rather than 10%. Recently, China's economy has started to experience stagnation, meaning a standstill." Starting this year, many minor enterprises in Wenzhou City had their owners either run away or commit suicide, because of the break in the fund-chain. Many enterprises went bankrupt or delayed paying the wages of their employees. A marketing expert Mr. Liu said: "Recently, waves of strikes have hit many places like Guangzhou and Shanghai. On the one hand, the CCP intends to calm people down with this report and thus avoid losing control. On the other hand, the RMB exchange rate keeps dropping, with many foreign investments being withdrawn. The CCP released the report to retain the foreign investments." According to china.com.cn in mainland China, the RMB spot exchange rate to USD decreased 0.5% this Thursday, hitting the lower band of the daily transaction range over 8 days in a row, which was a rare occurrence over the past three years. Chong Quan, an official from the Commerce Department said: "RMB has experienced a decrease recently, indicating that the CCP government has never manipulated the exchange rate." Xie Tian said: "Of course, it is controlled by the government. Before the foreign exchange is listed, the floating range every day, every month or every season, has been controlled by the CCP. Within the allowed range, the exchange rate can float. But once it runs beyond that range, the transactions are shut down immediately. This fact indicates that is under the control of the CCP." Xie Tian also said that the facts show that CCP officials are worried about the coming collapse of China's economy, and are therefore lying to the world's media and general public, misleading Chinese people. NTD reporters Lin Li, Tang Rui and Wang Mingyu 《神韵》2011世界巡演新亮点 http://www.ShenYunPerformingArts.org/