this objection illustrates a deeper problem with the way the phrase "conspiracy theory" is used. It's frequently used to dismiss any suggestion that someone in authority is behaving badly regardless of whether an actual conspiracy would be required.

You misunderstand Balding -- he asserts loudly and explicitly that the Chinese authorities misbehave with respect to statistical data. The conspiracy theories he is talking about are the conspiracies of China-watchers and the point of them would be to sow FUD about the Chinese economic development, presumably after shorting China.