China amends statistics law to combat data fraud

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BEIJING (Reuters) -China’s top legislative body on Friday approved an amended statistics law, state media said, in the latest move to fight persistent data fraud amid scepticism about the reliability of data in the world’s second-largest economy.

China aims to build a “complete, coordinated and efficient” statistical supervision system, the official Xinhua news agency said, citing the amended law that was approved by the standing committee of the National People’s Congress.

Local governments will be responsible for preventing and punishing statistical fraud, assessing statistical work of senior officials, and investigating and holding legally accountable those who commit statistical fraud according to law, Xinhua said.

The statistical work must “adhere to the leadership of the Communist Party of China,” Xinhua said.

Earlier this week, state media quoted a spokesperson of the top legislative body as saying the amended law would help strengthen the prevention of statistical fraud and increase the punishment of officials for falsifying economic data.

“In recent years, statistical fraud and deception continue despite repeated sanctions, seriously damaging the authenticity and accuracy of statistical data,” the spokesperson was quoted as saying.

“The public has strongly reflected on this and it has become one of the prominent problems that urgently need to be solved in statistical work.”

Analysts outside China have long been sceptical of the reliability of Chinese data, especially as the government has sought to defuse market concern about a protracted economic slowdown.

The government has repeatedly vowed to investigate and punish officials for forging economic data or interfering in statistical work to help improve the quality of data.

(Reporting by Kevin Yao; Editing by Christopher Cushing and Mark Potter)