BEIJING: The head of the International Monetary Fund, Kristalina Georgieva, said that China needs to change its economic policies to solve its property market crisis and boost spending and productivity. She said this while speaking to Chinese officials and global company executives.
China’s Commerce Minister, Wang Wentao, also said China is committed to opening its economy for multinational companies.
At a forum called the China Development Forum, officials expressed confidence in meeting economic goals, like 5% growth this year. They promised more support for important industries, which President Xi Jinping calls “new productive forces.”
But the IMF thinks China needs bigger changes. Georgieva said focusing more on consumers could add $3.5 trillion to China’s economy in 15 years. To do this, China needs to finish housing projects left incomplete by bankrupt developers and reduce local government debt.
China should also boost consumer spending power, according to Georgieva and other economists.
Investment from abroad in China fell by almost 20% in the first two months of this year. China wants to attract more investors, especially since tensions with the US and its allies have made some companies consider moving their operations away from China.
China plans to issue long-term bonds worth $140 billion to encourage investment and stabilize growth.
Officials also talked about President Xi’s plan to invest in industries like electric vehicles, space exploration, and advanced medicine.