Experts question China's purchasing power to convert GDP

With this algorithm, China will be overvalued by purchasing power parity. China's GDP per capita increased by more than 3,000 US dollar the World Bank says China's role is very important this newspaper (Money industry reporter Lishiang Wangjin rain) 2011, China will be the first full participant in the World Bank's International Comparison Program (ICP), making China's gross domestic product　　Can be compared with other countries in the world through purchasing power parity (PPP) conversions.　　Recently, the ICP Inter-Ministerial Coordination Group was established, by the National Bureau of Statistics, the Ministry of Finance and the National Development and Reform Commission and other 10 departments, Bureau of Statistics Secretary Jiantang and Vice Minister Li Yong as the ICP Interdepartmental Coordination group leader.　　ICP is a global statistical cooperation project, the main purpose is to calculate the various currencies of PPP, in order to use the PPP as a conversion factor, the national GDP into a unified currency unit, so as to compare and evaluate the actual economic size and structure of countries. 2011 is the benchmark year for a new worldwide ICP activity.　　Starting in January 2011, the ICP survey will be conducted in about 180 countries and regions around the world, and the entire activity is expected to end at the end of 2013. With the approval of the State Council, China participated in the new round of ICP activities for the first time.　　The ICP survey will be conducted throughout the country starting next January, in accordance with global harmonization of time requirements.　　According to a report published by the World Federation of Large Enterprises, China could overtake the US in 2012 as soon as possible by using purchasing-power parity.　　Connect the World Bank: China's role is very important the World Bank data Development Group, the ICP Group, confirmed to reporters this morning the important role of China in the 2011.　　The head of the group said that China's 2011 ICP Project played an important role in the comparative study in the region, and that China "plays a very important role" in the global ICP Project. The ICP Group says the total GDP measured in PPP is more reflective of a country's real economic situation. Joining ICP requires each country to provide detailed final GDP expenditure items in the "year of comparison".　　Among them, personal household consumption, public consumption, capital information, import and export are within the scope of consideration. The team further asserted that PPP was actually a classification of basic products that combined to form GDP and reflect price comparisons in countries or regions.　　According to the level of GDP measured in PPP, China's real growth rate is lower. 2009 per capita GDP (world top Ten and China) by PPP conversion Luxembourg 84003 USD 57827 US $ Norway 55672 USD singapore 50705 US $46436 dollar Ireland 41278 dollar Holland 40715 Dollar Australia 39231 dollar Austria 3874 8 Dollar Canada 37946 US dollar China 6838 dollar statistics Luxembourg by traditional method 105350 dollar Norway 79089 dollar UAE 58272 dollar Denmark 55992 Dollar Holland 47917 US $46436 USD Faeroe Is. 45188 dollar Austria 46019 Dollar Finland 44491 US $ Belgium 43430 USD China 3744 USD Note: According to the World Bank's data, PPP-per-capita GDP and the traditional method of GDP statistics by the difference of more than 3,000 U.S. dollars data source: World Bank Data Development Group ICP Group analysts questioned China's GDP may be overvalued in economics, PPP's theoretical exchange rate and the real exchange rate may be a big gap.　　For example, the renminbi's current market exchange rate for the dollar is 6.62 yuan, compared with about $3.85 in PPP terms.　　According to the International Monetary Fund's revised GDP rankings, the US topped 14.2563 trillion dollars in 2009, while China followed the 8.7652 trillion dollar. By contrast, the gross domestic product of China and the United States is not quite the same.　　However, according to traditional calculation, China's GDP is only 4.9 trillion U.S. dollars, the difference is very far. "People in different countries are different in their valuation of the same commodity, one commodity may be considered a luxury, and in another it is a common commodity."　　Mei Xinyu, an expert on foreign trade at the Ministry of Commerce, said the discrepancy would lead to a bias in PPP. Mei Xin-Yu believes that, for example, in the measurement of PPP in China and America, we should consider the different lifestyles of the two countries, such as Americans daily consumption of meat, milk accounted for a larger proportion of people and living area far larger than China and other objective factors should be taken into account. "Even in purchasing power parity terms, China's GDP overtook the US in 2012 too fast." "Zhongqing, director of the Beijing WTO Affairs Center, pointed out directly that, in fact, through the PPP calculation of GDP to compare the significance of China-US economic level is not significant, the key is to look at the" per capita "level.　　According to the IMF, in 2009, the U.S. per capita GDP was around $46000 trillion, while China was less than 4000 trillion dollars.　　Purchasing power parity calculates GDP not much. Xu Xianxian, a senior economist at the Chinese Academy of Social Sciences, told reporters that if China's GDP were calculated according to PPP, it was clear that China's GDP was overvalued. Xu Xianxian said that the renminbi is now appreciating and has reached about 1:6.6 against the dollar, and that China's real purchasing power is at a lower level.　　In PPP terms, China's GDP is certainly overvalued, as is GDP per capita. He also said that China's main domestic currency is the renminbi, and through the PPP calculation, China's import and export prices will also have an impact. If the Western countries follow this method, China's import and export prices will rise, thus affecting the volume of trade.　　China's imports and exports account for 2.6% of gross domestic product, and if so, China's gross domestic product will fall. Xu Xianxian that China's GDP calculation method still depends on China's actual purchasing power and national conditions, becauseMost of China's goods are much cheaper than in the west, and the GDP of PPP can be said to be less significant.　　Morning, the National Bureau of Economic Prosperity Monitoring Center Deputy Director Pan Jiancheng, said in an interview with PPP calculation does exist overestimated the problem of China's GDP.　　Pan Jiancheng pointed out that China is now trying to use PPP to convert GDP, but PPP is only "opinion", and is not recognized. Wen/journalist Lishiang Wang Jinhu Zeng