China to Revise Statistics Law to Combat Data Fraud and Improve Data Quality

China is set to revise its statistics law in an effort to combat persistent data fraud and improve the reliability of data in the world's second-largest economy. The draft of the amended law has been submitted to the standing committee of the National People's Congress for discussions, as announced by the National Bureau of Statistics on April 23, 2024.

The revisions aim to strengthen statistical supervision and establish a more complete statistical supervision system. Authorities will step up fines for firms and public institutions that refuse or delay reporting data, with such violations reflected in their credit records. The move is part of the Chinese government's ongoing efforts to improve the quality of economic data and address concerns about the reliability of official statistics.

The amended law seeks to pin down legal responsibility and build a complete statistical supervision system to address issues such as repeated data fraud, an imperfect supervision system, and low cost of violations. Analysts have long been skeptical of the reliability of Chinese data, especially as the government has sought to downplay economic concerns.

Why this matters: The revision of China's statistics law comes at a sensitive time for the country's economy, as Beijing wants to prove it can consistently meet its growth targets and appear credible. However, experts say it will take more transparency and honest reporting over several years to change the perception of unreliable Chinese data, as decades of skepticism cannot be covered by a year or two of good data.

The government has vowed to investigate and punish officials for forging economic data or interfering in statistical work. The revised law will uphold the Communist Party's leadership of statistical work and build a "complete" statistical supervision system, according to the National Bureau of Statistics.

Key Takeaways

• China to revise statistics law to combat data fraud and improve data reliability.
• Stronger fines and credit record penalties for firms and institutions that refuse or delay data reporting.
• Revised law aims to establish a complete statistical supervision system and pin down legal responsibility.
• Revision comes as China seeks to prove it can meet growth targets and appear credible.
• Government to investigate and punish officials for forging economic data or interfering in statistical work.