China's slowdown may be deeper
Experts studying electricity consumption in China say the economic slowdown in the country may be deeper than suspected
23 June, 2012
A well-placed executive in China said three of the largest coal storage facilities in are sitting on record levels of inventory, The New York Times reported Saturday.
The buildup in coal indicates that factories have slowed down, the Times reported.
As the evidence of a slowdown in electricity consumption literally piles up, other experts note that China's official data reporting has long been taken with a grain of salt.
Goldman Sachs, among others, have concluded that economic data from China is not the most reliable. Some of the data is simply based on officials who don't want to report negative data to the government.
Skepticism about economic data from China also comes from Beijing, although not officially. Media activist Web site WikiLeaks has released a diplomatic cable from Li Keqiang, who called some of the government's economic statistics "man-made."
Li is considered to be the next in line to become China's premier this fall, the Times said.