Chinese President Xi Jinping has delivered a rare and blunt rebuke to local officials for inflating growth figures and pursuing “reckless” development projects designed to produce superficial results rather than real economic value. Speaking at last week’s Central Economic Work Conference, Xi warned that exaggerated statistics, wasteful construction and poorly planned investments would no longer be tolerated, according to a report published on Sunday by the Communist Party’s official newspaper, People’s Daily.
“All plans must be based on facts, aiming for solid, genuine growth without exaggeration, and promoting high-quality, sustainable development,” Xi was quoted as saying. He added that officials who act “recklessly and aggressively without regard for reality,” impose excessive demands, or deploy resources without proper consideration “must be held strictly accountable.” The unusually direct language singled out practices such as unnecessarily large industrial parks, disorderly expansion of exhibitions and forums, inflated data, and so-called “fake construction kickoffs” that exist largely to impress superiors.
The remarks underline growing concern at the top of China’s leadership over the quality of economic growth at a time when mounting local government debt is constraining the state’s ability to stimulate the economy. With access to economic data in China tightly controlled, outside observers have struggled to assess the true health of growth, adding to anxieties over whether official figures reflect underlying realities.
Xi stressed that officials should not be judged solely on headline growth rates, but also on their record in improving people’s well-being and maintaining social stability. He said that laying a solid long-term foundation for the economy is just as important as short-term stimulus measures, signalling a shift away from growth-at-all-costs approaches that have long defined local governance incentives.
He also warned against “inefficient” investment, particularly projects that are abandoned shortly after completion, and urged cadres to address the recent slump in capital investment calmly rather than through hasty spending sprees. Fixed-asset investment fell 2.6 per cent in the first 11 months of this year, putting China on track for its first annual decline since at least 1998, highlighting the depth of the current slowdown.
Xi’s comments echo earlier warnings issued this year, when he criticised local governments for crowding into the same fashionable sectors without regard for local conditions or long-term demand. In remarks reported by People’s Daily in July, he questioned the rush into areas such as artificial intelligence, computing power and new-energy vehicles, asking whether every province should be developing the same industries.
Together, the statements suggest rising frustration within the central leadership over how economic policies are being implemented on the ground. As China grapples with slowing growth, heavy debt burdens and weakening investment, Xi’s message signals a tougher stance on data manipulation and vanity projects, and a push to rein in local officials who prioritise appearances over sustainable economic outcomes.
