Officials of the International Monetary Fund China has the ability to make the

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The International Monetary Fund (IMF) Rhee, Director for Asia-Pacific 5th essay posted on the IMF website said, although downside risks have increased, but China has the ability to make the transition.

Rhee said in the article of the day, while China's manufacturing activity slowed and the construction industry, but infrastructure investment and consumption, especially in services, continues to maintain a steady growth momentum, indicating that China's economy could reduce its reliance on exports and investment, towards consumption and service-driven transformation of growth pattern.

Rhee believes that China has sufficient policy space to deal with the rapid economic slowdown. China should take measures to address demand and rebalance the economy, such as encouraging consumption, in particular, provide consumer support to socially vulnerable groups.

Rhee said that China should avoid taking the credit-fuelled investment translation companies leverage again. Since the financial crisis, the State-owned enterprises, the real estate and construction companies, as well as a number of other small companies increased leverage.

He said that although the risks in these areas are still in control, but should not continue to increase leverage, Chinese stock market volatility this summer reflected the risk of excessive leverage. However, he noted that, because of the low Chinese Equities asset allocation, also a lower share of corporate financing through the stock market, stock market volatility limited direct effect on the real economy. "Made in China" 2025 "and Germany" industrial

China's economic impact on the global economy, Rhee said that the IMF has ever measured, 1% economic growth, China, other Asian countries, the decline in the economic growth will be 0.3%.

He said that with China's steady economic growth, continue to integrate into the global economy, and spillover effects on the surrounding economy, China is more and more obvious. Not only through trade channels, but also through financial markets have an impact on the surrounding economy.