China Will Participate Fully In The International Comparison Project Of The World Bank Organization (ICP).

China will participate fully for the first time in 2011.

Purchasing power parity (PPP) is an equivalent coefficient between currencies calculated at different price levels in different countries, so as to make a reasonable comparison of the gross domestic product of each country.

However, there is a big gap between the theoretical exchange rate and the real exchange rate.

A simple example of PPP is the Big Mac index created by the Economist magazine.

If a McDonald's Big Mac sells for $2 in the US and 10 yuan in China, then the purchasing power parity rate between the US dollar and the renminbi is 1:5.

2011 is the base year for the new round of ICP activities around the world.

Since January 2011, around 180 countries and regions have conducted ICP surveys at the same time. The whole activity is expected to end by the end of 2013.

With the approval of the State Council, China will participate in the new round of ICP activities for the first time next year.

The inter ministerial coordination group of China International Comparison Project, composed of 10 departments, including the National Bureau of statistics, the Ministry of Finance and the national development and Reform Commission, will be responsible for investigating relevant data in China.

Ma Jiantang, director of the National Bureau of statistics and Li Yong, Vice Minister of finance, work as CO ordinator group leader.

In 2005, China provided data from 11 cities and participated in the ICP project for the first time.

Based on these data, the world bank estimated China's purchasing power parity at that time.

In December 2007, the World Bank released a report that China's PPP measurement accounted for 9.7% of the world's economic scale.

The bank admitted that it had overestimated China's GDP and lowered China's purchasing power.

According to the International Monetary Fund's GDP ranking adjusted by purchasing power parity, in 2009, the United States ranked first in terms of 142563 billion dollars, while China followed 87652 dollars.

Obviously, this gap is smaller than the actual gap between the two countries GDP.

Experts questioned this comparison.

Zhong Qing, director of the Beijing WTO affairs center, said that it is still critical to compare the GDP between China and the US in terms of purchasing power parity. The key is to look at the "per capita" level.

According to the International Monetary Fund (IMF) data, in 2009, the average GDP per capita in the United States was about 46000 dollars, while China was less than 4000 dollars.