Why is the IMF concerned about China's export-led growth?

The IMF believes China's heavy reliance on exports risks escalating global trade tensions and is unsustainable for its large economy.

What is China's current trade surplus?

China's trade surplus exceeded a record $1 trillion in 2025, according to recent reports.

What does the IMF suggest for China's economic future?

The IMF recommends that China focus on stimulating domestic consumption and leveraging its large internal market for growth.

Home / Business and Economy / IMF Chief: China's Export Reliance Risks Global Trade Wars

IMF Chief: China's Export Reliance Risks Global Trade Wars

10 Dec

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Summary

IMF urges China to reduce export dependency for growth.
China's trade surplus exceeded $1 trillion in 2025.
Domestic consumption is key for China's future growth.

IMF Chief: China's Export Reliance Risks Global Trade Wars

The International Monetary Fund's Managing Director, Kristalina Georgieva, has advised China to address its economic imbalances, stating that the nation's reliance on exports for growth is unsustainable. China's trade surplus surpassed $1 trillion in 2025, a figure that risks provoking further import restrictions from trading partners.

Georgieva highlighted that China's substantial domestic market offers a more viable avenue for growth. While China's leaders have recognized the need to boost domestic consumption, factors like the COVID-19 pandemic and a downturn in the real estate market have hampered this shift. Despite these challenges, China continues to advance in high-tech manufacturing sectors.

The IMF recommends comprehensive policies to stimulate Chinese consumer spending, which has softened due to job and income losses and the prolonged property market slump. This weakened domestic demand has contributed to a cheaper yuan, making Chinese exports more competitive and exacerbating trade imbalances.