Measuring the Chinese Economy. What to Trust?

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By Andy Rothman

A question that is posed frequently by those skeptical over the health of China’s economy is: “If electricity consumption and rail freight traffic are both weak, how can GDP be expanding by more than 6%?”

This is a great question because the answer highlights the dramatic pace of change in the structure of China’s economy. In today’s Sinology, we explore the reasons why the so-called “Li Keqiang Index” is a poor way to assess China’s growth, and offer some better metrics.