In an effort to curb the submission of fraudulent economic data, China has announced that it will be placing harsher penalties on regional leaders found to be guilty of the practice.
The move comes amid increased skepticism over the reliability and accuracy of the government's economic data, fueled by news of officials intentionally bloating data for their own benefit.
The issue was once again brought up after the National Bureau of Statistics (NBS) had released new figures for the country's economic growth in the third quarter of this year.
According to the NBS, economic growth had slowed down by 6 percent over the quarter, its slowest pace since 1992.
Critics of the government's data had pointed out that the growth rate reported was overstated given that the country's revenue growth and corporate profit numbers.
For the third quarter, government revenue only grew by 3 percent, while corporate profits had fallen by 1.7 percent.
China's statistics offices have not admitted that the data it reports is unreliable, but it does acknowledge that there is rampant data fraud from local officials.
Intentionally adjusted data is often submitted by officials for their own political gain and other incentives.
To minimize or eliminate the practice, China announced plans to amend its existing statistics law. Under the amendment, local officials such as governors, mayors, and local leaders will be held accountable if they are found cheating.
Statistics office employees and regional executive leaders will also be facing punishment if they are found to be involved in the practice. Officials found guilty will automatically be removed from their position.
The draft amendment for the statistics law is currently out for public feedback until November 9. The draft also includes a number of measures that aim to utilize advanced technologies, such as cloud computing and artificial intelligence, to facilitate the gathering of reliable statistical data across the country.
China's current statistics law, unfortunately, does not include any kind of punishment for officials found guilty of over-reporting economic activity. Various cases have already been recorded, and officials are often not really held accountable even when the fraud is exposed.
The NBS has attempted to impose a number of security measures to ensure data accuracy, but local officials still find ways to alter their figures.
In 2012, the NBS implemented a direct reporting system that gathered data directly from industry players. However, it was later found out that some officials had bribed some companies to alter the reports they submit.
