China’s economy is experiencing a downward trend, but official data doesn’t seem to align with the public’s perception, a phenomenon dubbed as “economic temperature difference.” The official publication of the Chinese Communist Party, “Qiushi,” recently published an article discussing the topic of the “temperature difference” between macroeconomic data and micro-level perceptions, arguing that “both are real, just measured on different dimensions,” and urging people not to “amplify anxiety.” Analysts believe that the party media is trying to defend the authorities, but the economic issues have become so severe that they can no longer be hidden.
In the latest issue of the CCP’s publication “Qiushi,” an article titled “How to View the ‘Temperature Difference’ Between Macroeconomic Data and Micro-level Perceptions” was published under the pseudonym “Jingping.” The article describes macroeconomic data as the “thermometer” of the economy and micro-level perceptions as the “body temperature” of the people, stating that “both are real, just measured on different dimensions.”
The article emphasizes the need to dialectically view the “temperature difference” from different dimensions in order to accurately grasp the economic landscape and not let localized biases exacerbate anxiety and lead to skewed expectations.
It further explains that the deeper reason behind the “temperature difference” lies in the current critical period of China’s economy transitioning from old to new growth engines, showing significant structural differentiation in economic operations. As new technologies and industries emerge, old sectors and positions need to contract and adjust, leading to an inevitable period of mismatch between the old and new.
A commentary by the Hong Kong media “Ming Pao” on August 4 suggested that the article by the party’s media could be seen as an official acknowledgment of the “temperature difference,” addressing it directly.
Commentator Li Linyi told Epoch Times that the article follows the typical approach of whitewashing for the CCP. It attempts to defend the party’s poor economic reality exposed by the public, claiming that macroeconomic data is the “thermometer” of the economy and that “both are real, just measured on different dimensions.” However, people perceive the data as inaccurate, feeling the economic “winter” themselves, rendering the party media’s defense useless.
“Ming Pao” suggested that during a recent Politburo meeting, there was no sense of urgency or signs of significant policy shifts to support consumption and income, leading to uncertainty about effective policies.
On social media platforms, netizens commented on the party media’s article, stating, “For the authorities, it is indeed a matter of ‘perspective’ because people are just numbers in their eyes, they do not have ‘body temperature’.” Another comment read, “Common people can adjust their expectations, cut expenses, but the government wants to grab! This should be said to the government.” Some criticized it as essentially data fabrication.
Recently, the Ministry of Finance of the CCP disclosed that all provinces had a fiscal self-sufficiency rate below 100%, showing a budget deficit at the provincial level.
Before that, on July 15, it was reported that China’s second-quarter economic growth slowed to 4.3%, lower than the 5% growth in the first quarter of this year and below the 4.5% growth estimated by economists.
In response to this, American economist David Huang told Epoch Times that Beijing’s release of the data indicating a slowdown in China’s GDP for the second quarter also signifies that the fabrication of data can no longer continue.