'Electricity use and assorted proxies of industry suggest that it very probably didn’t grow that fast.
'It is an official charade because China’s GDP has long been recognized as a distorted measure of the country’s economic growth. The value “created” in the country’s economy is inflated by the fact that a good chunk of the stuff bought and built in China isn’t worth the official sticker price.
'This is thanks to the government’s “implicit guarantee” of any investments that are political priorities. This gives investors, both corporate and individual, the confidence that the government will bail out any inconvenient losses. It encourages banks and individual savers alike to lend to wasteful projects, as long as an official imprimatur is looped in somewhere. It lets lenders accept these unprofitable projects at face value as collateral for more loans.