IMF Warns China’s Economic Policies Are Causing Damage to Others

The International Monetary Fund faulted China’s economic policies for causing waste at home and damage abroad and called for a reorientation by Beijing to embrace a model based on domestic consumer spending.

“Transitioning to a consumption-led growth model should be the overarching priority,” the IMF’s executive directors said in a statement Wednesday released alongside the Washington-based lender’s annual review of China’s economy, known as an Article IV consultation.

In that review, IMF staff highlighted China’s large current-account surplus, which has featured “adverse spillovers to trading partners.” Some of that excess stems from exports getting a boost from “real depreciation ...