Over the past nine years, the “ Li Keqiang Index ” has become an unofficial method of measuring China’s economic growth since the now famous 2007 exchange between Premier Li Keqiang, then the Communist Party secretary of Liaoning Province, and U.S. Ambassador Clark Randt.
Within the exchange, Li admitted that he preferred to assess the state of Liaoning’s economy by averaging the growth rates of electricity production, rail freight, and bank loans, adding that official statistics were “man-made” and “for reference only.”
Since Li’s admission, Wall Street analysts have constructed their own models of Chinese economic growth by combining elements of the Li Keqiang index with other economic statistics, and all of these measures suggest that Chinese economic growth has...
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