Poles apart

摘要

The Chinese invented the abacus; In dia invented the binary and the decimal systems. So both nations are deft at playing with numbers. All the more reason to look carefully at their governments' finances (see chart). According to official estimates, China's government ran a budget deficit of around 1% last year. But some economists reckon that the cautious government is understating its true fiscal health: it probably had a small surplus. Indeed, Jiming Ha, chief economist at China International Capital Corporation, an investment bank, reckons that if the profits of state-owned firms were also added in, the government could have a surplus of around 3% of gdp. China's public debt has also fallen to only 17% of gdp, well below the average ratio of 77% in oecd economies. Indeed, China has the best fiscal position of any big country, giving the government plenty of room to cushion the economy if demand suddenly falls.