A report published by China’s National People’s Congress has exposed false recording of financials by thousands of firms linked to government-led infrastructure projects over the past two years, Caixin reports.
As many as 1,195 firms and 2,775 “investment units” were blamed by the report for pursuing fast growth results at the cost of quality. It was not specified whether the firms themselves were private or state-backed.
One notable example was Tianjin’s high-investment Binhai New Area, which had misreported its 2016 GDP by RMB 334.8 billion ($51.73 billion).
“Some places set unrealistic targets for economic growth,” it read. “When they find the targets are impossible to attain, they turn to cooking the data.”