By casting doubt on official Chinese economic figures at a forum in Washington last month, economist Gao Shanwen sparked the fury of the country’s president, Xi Jinping. The chief economist at state-owned SDIC Securities said China’s economy may have grown at less than half the roughly 5% pace touted by authorities.
Upon learning of the questioning, Xi ordered an investigation to be opened against Gao, who frequently advises the government on economic and financial policies. Xi then ordered authorities to discipline him.
Two comments Gao made at the forum, jointly organized by the Peterson Institute for International Economics and a Chinese think tank, angered Xi, people familiar with the matter said.
First, the economist questioned the reliability of Chinese growth data. “We don’t know the real number of China’s real growth,” Gao said at the December 12 event. “My own speculation is that over the last two to three years, the real number on average may be around 2%, although the official number is closer to 5%.”
Gao also doubted Beijing’s ability to take the necessary steps to boost growth and called Xi’s announced efforts “opportunistic.”
The questions were asked at a time when China is trying to calm concerns about a possible prolonged recession, driven by the real estate collapse. Criticism of the country’s official data is common.
