IMF Warning on China Economic Policies Highlights Spillovers to Others

The IMF issued an IMF warning on China economic policies, urging Beijing to pivot toward domestic consumer spending and saying a shift to a consumption-led growth model should be the top priority, as the fund warned China’s large current-account surplus is creating adverse spillovers for trading partners, according to an IMF board statement alongside its annual Article IV review.

The IMF said part of the external imbalance reflects export support from a real depreciation of the renminbi.

China’s representative on the IMF executive board, Zhengxin Zhang, pushed back, saying 2025 export growth was driven mainly by competitiveness and innovation, as well as front-loading linked to U.S. trade policy.

The comments come weeks before China’s National People’s Congress sets 2026 economic targets.