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Believe Those China Growth Stories at Your Own Risk - Just Ask Google!

In "Goldman Seems to Trust the Chinese Economic Reporting a Tad Bit More Than I Do!", "It Doesn't Take a Genius to Figure Out How This Will End" and "He Who Bloweth the Bubble With Wet Lips Should Stand Back Lest Spittle and Saliva Spray Upon Ye Face" I not only declared my opinion that China appears to be enthralled in a massive bubble, but Chinese economic reporting cannot be trusted. There have been a few comments stating that the "new and improved China is not the China of 1989 Tiananmen Square".

It appears that the recent flap with Google security and the censoring of searches sheds light on this debate.

 

 From CNBC:

China has defended its censorship, and Chinese media are stressing that foreigners must abide by Chinese laws.

Most of the filters on Google.cn were still in place on Friday, though controls over some searches, including the June 4, 1989 Tiananmen crackdown, appear to have been loosened.

"According to local laws, rules and policies, some search results cannot be shown," reads a message in Chinese following sensitive search topics, a line Google.cn used for years.

Google, which has said it hopes to work with China to establish an unfiltered search engine in that market, confirmed it was still censoring results on Google.cn.

 Pray tell, how can anyone in their right mind trust the economic reporting of company that says it is running 13 cylinders of an 8 cylinder engine leading the world to economic recovery when they overtly, and without denial, censor free speech and publicly outlaw research and even Internet searches on government activities? Come now. Is it wise to believe the Chinese government's growth rates and when:

  1. anecdotal evidence flies to the contrary (ex. manufacturing output vs. electricity consumption, export figures vs shipping and container activity, etc.)
  2. they overtly censor and outlaw independent resaerch
  3. they have yet to outright deny involvement in an attempt to hunt down private email addresses of state opinion dissidents
It amazes me that ANYONE will put their faith in the reports of superman level economic rebound coming from a state that clearly acts to conceal facts. I doubt many of the US numbers (see Are the Effects of Unemployment About To Shoot Through the Roof?), so you know I am highly suspect about what comes out of China.
 
 


Disclosure: No positions, but may take short positions soon