IMF Urges China To Cut State Subsidies

The International Monetary Fund in a report released this week urges China to rebalance its economy by halving state subsidies from about 4 percent to 2 percent of GDP and shifting toward consumption-led growth after last year’s $1.2 trillion trade surplus. The IMF cites a 3.7 percent current-account surplus, prolonged property slump, and recommends 5 percent of GDP stimulus over three years; it warns of international spillovers and rising tech competition.