China measures its GDP based on any kind of economic activity, not end sales. If China chooses to build a skyscraper to the moon, it will count as economic growth even if the whole thing collapses two days after completion.
In fact, China has been using this ploy for years. As ZeroHedge has noted one of the more staggering activities the People’s Republic has engaged in is actually blowing up buildings and then constructing new buildings on the property in order to maintain its economic “miracle.”
ZeroHedge notes that the below building was actually blown up BEFORE it was competed in a kind of GDP “two for one” deal.