How China's economy is exaggerated?

I didn't quite believe that when a friend told me that the investors in U.S are so crazy about the Chinese economy that their money have all run to China . But my opinion has changed after reading the article from a book called China. INC. The author gave fourteen reason why China change the U.S business, which made me feel shocked.

The author said China's economy is much larger than the official numbers show and the growth is unique in the history. He said the U.S Central Intelligence Agency estimated China's economy is the one with a GDP of $6.6trillion, almost five times that the actually reported $1.4trillion in 2003. One of the reason is that local governments are considerably undercutting the growth rate to get more funds and compensation. This is partly true in some poor provinces, but another important fact worried the Central government is the local government officials always reported higher growth rate than the real one, in order to get promoted in the career.

The author also said that China's economy is an enterprenurial economy and will be a bully after listing the example of Chinese businessmen who are making socks or furnitures, the cheap consumer goods. Then he said that cheap consumer goods are only part of what Chinese made. Commercial technology and large Research investment is an advantage for Chinese company to develop. But it is not factual. A story from the Economist introduced by Fons has deeply digged into the technology developed by Chinese companies, which said that foreign companies control virtually all the intellectual property in China and account for 85% of its technology exports.

More expensive raw materials is due to China's growth, said the author. But he should have to refer that it is also China who has suffered from the sharply increase of the prices.

It seems foreign reporters need to do a better job to make the people outside know the truth, the truth beyond the modest Chinese.