The IMF has released its annual economic evaluation for China. The Article Four Consultation Staff Report says China is transitioning to a slower yet safer and more sustainable growth. This involves giving the market a more decisive role in the economy.
The IMF expects growth to slow to 6.8 percent this year. It says China has made progress in reducing vulnerabilities. It cites slowing down credit growth, moderating investment, and passing a new budget law aimed at safeguarding fiscal sustainability.
The report says a key challenge now is to ensure sufficient progress in reducing vulnerabilities, while preventing growth from slowing too much. As for the Chinese currency, the renminbi, the report says it's "no longer undervalued."