## IMF Staff Completes 2020 Article IV Mission to the People’s Republic of China

_IMF News, November 4, 2020_

## Source details

**Canonical URL:** [IMF Staff Completes 2020 Article IV Mission to the People’s Republic of China](https://www.imf.org/en/news/articles/2020/11/03/pr20330-china-imf-staff-completes-2020-article-iv-mission)

## Other formats

- [Markdown version](/en/news/articles/2020/11/03/pr20330-china-imf-staff-completes-2020-article-iv-mission/index.md)
- [Structured JSON version](/en/news/articles/2020/11/03/pr20330-china-imf-staff-completes-2020-article-iv-mission/index.json)
- [Bundle manifest](/en/news/articles/2020/11/03/pr20330-china-imf-staff-completes-2020-article-iv-mission/bundle-manifest.json)

## Bibliographic details
- Published: November 4, 2020

---

### Mission overview and context
- Press Release No. 20/330; dated November 4, 2020.
- IMF team led by Mr. Helge Berger, Mission Chief for China and Assistant Director of the Asia and Pacific Department.
- Virtual Article IV Consultation discussions conducted from October 26 to November 4, 2020.
- Discussions held with senior officials from the government, the People’s Bank of China, private sector representatives, and academics.
- IMF First Deputy Managing Director Mr. Geoffrey Okamoto joined policy discussions and met with:
  - People’s Bank of China Governor Yi Gang
  - China Securities Regulatory Commission (CSRC) Chairman Yi Huiman
  - China Banking and Insurance Regulatory Commission (CBIRC) Vice Chairman Zhou Liang
- IMF Communications Department media contact: PRESS OFFICER: Ting Yan; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson

### Growth, inflation, and outlook
- GDP growth projected at 1.9 percent in 2020.
- GDP growth projected at 8.2 percent in 2021.
- Core inflation expected to remain subdued.
- CPI inflation in 2021 expected to be below the pre-crisis target of about 3 percent.
- Recovery characterized as fast but unbalanced, relying heavily on public support while private consumption is lagging.
- Downside risks to the outlook identified from rising financial vulnerabilities and an increasingly challenging external environment.

### Macroeconomic policy guidance
- Fiscal policy:
  - Recommendation: stay slightly expansionary in 2021.
  - Shift composition from spending on infrastructure towards strengthening social safety nets and promoting green investment.
  - With public debt already high and rising, fiscal policy effectiveness should be underpinned by:
    - an improved macro-fiscal framework,
    - better intergovernmental coordination,
    - leveraging digital technologies to deliver support to vulnerable groups.
- Monetary policy:
  - Recommendation: remain accommodative given low inflation.
  - Accommodative monetary stance will support the fiscal effort.
  - Further modernization of the monetary policy framework recommended to strengthen the effectiveness of conventional interest rate policies and improve credit intermediation.
  - Continued exchange rate flexibility recommended to facilitate adjustment to changing external circumstances.

### Financial stability and banking sector measures
- Authorities are monitoring financial vulnerabilities closely.
- As recovery takes hold, recommendation to replace exceptional financial support measures with proactive efforts to:
  - address problem loans,
  - strengthen regulatory and supervisory frameworks.
- Recommendation: establish a comprehensive bank restructuring framework to lower systemic risks and continue de-risking.

### Structural reforms and medium-term priorities
- Simultaneous implementation of additional key reforms recommended:
  - further opening up of domestic markets,
  - reforming state-owned enterprises (SOEs),
  - ensuring competitive neutrality with private firms,
  - promoting green investment,
  - strengthening social safety nets.
- Expected outcomes: support a job-rich and balanced recovery; boost potential growth; reduce external imbalances; build a more resilient, greener, and more inclusive economy.

### International role and global priorities
- China can help the international community address major global challenges by:
  - supporting international efforts to expand access to a vaccine,
  - providing debt relief to low-income countries,
  - providing sustainable financing for global infrastructure investment,
  - tackling climate change.
- Recommendation: China and its trading partners should work together to build a more open, stable, transparent, rules-based international trade and investment system.

*IMF Staff Completes 2020 Article IV Mission to the People’s Republic of China*

---


## References

- [People's Republic of China and the IMF](http://www.imf.org/external/country/CHN/index.htm)
- [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2020/11/03/pr20330-china-imf-staff-completes-2020-article-iv-mission_