"If we used the exchange rate, the value of a new skyscraper in Shanghai would count much less toward China's GDP than an identical building in Chicago would co

"If we used the exchange rate, the value of a new skyscraper in Shanghai would count much less toward China's GDP than an identical building in Chicago would count toward America's, which makes no sense." Somehow, I don't think the author has thought very hard about this. The value of the building isn't labor plus materials -- it's not like he'd make the same argument about putting it in the Gobi desert. It's possible to estimate the proper exchange rate, and use this to estimate China's actual GDP.