While IMF chief Christine Lagarde warns of a hard landing in the Chinese economy, China's Vice Finance Minister, Zhu Guangyao, says China doesn't agree with this analysis, and that U.S. monetary policy is the main wildcard.
"The Federal Reserve has shown that it will increase interest rates, if the economy stays stable after ending QE tapering. That move will have impact on the U.S., on the world economy, of course, as well as China. So we are very concerned about U.S. monetary policy decisions," Zhu said.
While the IMF urges China to curb risks in shadow banking and asset quality. Zhu says the problems are controllable.
He said: "Does China have a shadow banking problem? Yes, we have. But its nature and content differ from the western concepts. Our shadow banking are mainly shown in trust funds, which are off balance sheet. Their total amount is not too big, but the challenge is the fast pace of growth.
"Meanwhile, we note that the shadow banking could also support the real industry. So we will be careful in dealing with it."
Zhu Guangyao says China will stick with its structural reforms in the face of both external and internal challenges.
