“China is hurting the world…” IMF warns China to correct its mistakes

New Delhi: The International Monetary Fund (IMF) has issued a major warning to China. Strongly criticizing the Dragon’s economic policies, the global body has clearly stated that China is not only harming itself but also harming other countries around the world. It should immediately correct its mistakes and adopt a model based on domestic consumer spending.

IMF issues this warning to China
IMF issued this warning to China in a report. According to Bloomberg, the IMF’s executive directors issued this warning in a statement issued on February 18th during their annual review of the Chinese economy. In this statement, the International Monetary Fund focused on China’s large current account surplus, which is adversely affecting its business partners.

In its review report, the IMF stated that the surplus is very large. This surplus reached a record level, increasing by 73% amid a surge in Chinese exports. According to Bloomberg, China’s surplus reached 3.7% of GDP last year, with exports exceeding imported goods by a record $1.2 trillion. Meanwhile, the fall in the value of the yuan is benefiting Chinese exports, but weakening domestic demand and declining imports are a major concern for China.

Goldman Sachs also warned
Before the IMF, Goldman Sachs economists had also warned of the negative impact of China’s economic policies on the world. An analysis released in November last year stated that China’s growing export capacity directly translates to a negative impact on the rest of the global economy. Now, the International Monetary Fund has also highlighted the issue of China’s harm to the world.

IMF gave China a blow here too
China’s GDP growth in 2025 was 5%, in line with Beijing’s official target. However, the IMF now estimates that China’s growth rate will slow to 4.5% this year. Many economists predict that China will set its target for 2026 between 4.5% and 5% next month.

A Warning and a Major Advice for China
According to the report, the IMF has stated that China’s economic policies are leading to domestic waste and losses abroad. Along with this warning, the global body has advised Beijing to adopt a model based on domestic consumer spending and change its approach.

The IMF stated that China should prioritize and implement a growth model based on domestic consumption, shifting the economy from a reliance on exports to domestic consumption. However, Zhang Zhengxin, China’s representative on the IMF Board, refuted this criticism, stating that China’s export growth in 2025 was primarily driven by competitiveness and innovation capabilities.