The head of the International Monetary Fund urges Chinese authorities to address economic imbalances

The IMF recommends that China implement a more expansionary macroeconomic policy mix, including additional fiscal stimulus, further monetary easing, and greater exchange-rate flexibility. It urges China to strengthen its social protection system and accelerate reforms such as Hukou liberalization to reduce excess household saving and boost consumption. Finally, the Fund advises scaling back public investment and industrial policy support to improve resource allocation as well as redirect fiscal resources toward social spending and addressing property-sector stress.