New report cuts China's economy down a size

The ADB suggests China is 40% poorer and smaller than previously believed, and that its exchange rate is less undervalued.

An Asian Development Bank report is suggesting that ChinaƆs GDP on a purchasing power parity basis PPP is 40% smaller than previously believed, according to Albert Keidel, a China specialist at the Carnegie Endowment for International Peace.

Keidel wrote an article in the Financial Times on the topic last month. Keidel is an expert on PPP, and did groundbreaking research on China in the 1990s.

The report will delight the Chinese government which has frequently complained about the previously...

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