There may be 130 million fewer Chinese people than thought

There is a wild story about China published by Newsweek today. It University of Wisconsin-Madison researcher Yi Fuxian who says China’s official population numbers are wrong and that the 1.41 billion population estimate is off by nearly 10%.

Citing births and deaths data, he says the true figure is about 130 million people smaller.

“Economically, China’s local governments have a strong incentive to inflate population figures,” Yi said. “More residents mean larger fiscal transfers from the central government, including funds for priorities like education, pensions, and poverty alleviation.

Others note that no other researchers have come to the same conclusions from similar data sets.

Whatever the truth, the report highlights the persistent lack of faith in Chinese data and that its demographics are worsening. By 2050, the median Chinese will be over 50.

This article was written by Adam Button at www.forexlive.com.