The tech giant’s data about the Chinese market shows why Beijing must embrace honesty and transparency in its statistics.
When Apple cut its forecast for revenue on Jan. 2, world financial markets swooned. The tech giant’s own stock price fell 10 percent. The global reaction, however, was not caused merely by concerns about Apple.
To many investors, it was the reason given: flagging iPhone sales in what Apple said was a slowing economy in China, its largest customer base. Apple’s credibility about the Chinese market is greater than all the official statistics provided by the world’s second largest economy.
Financial experts are hungry for accurate data about China, from its unemployment rate to its overall growth. Corporate books in China are notoriously unreliable, says China expert Derek Scissors. During an economic downturn such as now, he adds, official data is “falsified outright.”
In Beijing, the central government confesses to the problem and claims it is punishing officials who issue bogus statistics.
