IMF rebukes China's model with its own credibility in tatters

IMF Says China’s State-Led Growth Model Is Hurting Other Economies, Calls for Subsidy Cuts

The International Monetary Fund (IMF) has sharply criticized China’s state-led growth model, warning that heavy industrial subsidies, debt-financed investment, and weak domestic demand are distorting the economy at home and creating damaging spillovers abroad. In a Feb. 18 report following the conclusion of the IMF’s most recent Article IV review of China and its economic policies, IMF analysts estimated that Beijing, as of 2023, spent about 4 p…

IMF rebukes China's model with its own credibility in tatters

As the International Monetary Fund takes China to task, the world’s “lender of last resort” is grappling with a new legitimacy crisis. It used to be a one-size-fits-all response to financial crackups that earned the IMF global ire. From the 1997-98 Asian financial crisis to the lead-up to the 2008 “Lehman shock” to any number […] The post IMF rebukes China’s model with its own credibility in tatters appeared first on Asia Times.

IMF Urges Beijing To Curb Industrial Subsidies As Flood Of Chinese Goods Crushes Global Industrial Bases

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FT: IMF calls on China to halve industrial subsidies

Key topics:IMF urges China to cut state support for industry amid overcapacity concerns.China’s industrial policies cause trade tensions and weak domestic demand.IMF recommends shift to consumption-led growth and social welfare reforms.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bas…

IMF urges China to halve industrial subsidies

The International Monetary Fund called on China to halve its industrial subsidies, as concerns mount about manufacturing overcapacity in the world’s second-biggest economy. Beijing has in recent years ramped up exports of manufactured goods, notably EVs and green energy technology, and built up a trade surplus of over $1 trillion. It has led to worry overseas and at home: Policymakers worry that domestic supply gluts are causing damaging price w…