As an institutional effort to ensure the reliability and accuracy of the statistics collected across the country, the Chinese government enacted the Chinese Statistical Law in 1983. Its enforcement, however, remains a big problem as revealed by a series of nation-wide inspections (zhifa jiancha) carried out after 1985. In the 1989 inspection, for example, there were over 50,000 violations, and more than 60,000 in both the 1994 and the 1997 inspections.1 Such violations, mainly in the form of statistical manipulation, have reportedly occurred at various administrative levels from village to prefecture and even province. In 1998, for example, although the unexpected floods in China and the Asian financial crisis made it difficult for the Chinese government to achieve its pre-estimated growth rate, only one of the 31 principal administrative regions (Xinjiang) reported that it grew at a rate of 7.8 per cent (the national figure), whereas all the rest reported a growth rate of 8 per cent or more. While different ways of price calculation might be partially responsible for the discrepancies between national and provincial figures, “exaggerations about economic performance did exist in some regions.”