People’s Republic of China: Selected Issues
August 30, 2024
Author: International Monetary Fund (IMF) Washington, D.C.
Series: Country Report No. 2024/276
This paper on the People’s Republic of China was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on July 3, 2024.
Prepared by a team led by Sonali Jain-Chandra, with individual chapters authored by Natalija Novta; Yizhi Xu; Ashique Habib (all APD), Simon Black, Anthony Liu, James Roaf and Karlygash Zhunussova (all FAD), Andrea Presbitero and Robert Zymek (RES), Dmitry Plotnikov (SPR) and Phakawa Jeasakul (Resident Representative in Hong Kong SAR).
People’s Republic of China Selected Issues.pdf
CONTENTS
DEFLATION VULNERABILITY AND INFLATION-AT-RISK
A. Introduction
B. Deflation Vulnerability Index: Methodology and Data
C. Inflation-at-Risk
D. Policies and Conclusion
References
ANNEX
I. Data Sources and Sample Description
SERVICE SECTOR PRODUCTIVITY, ALLOCATIVE EFFICIENCY AND INNOVATION
A. Introduction
B. Stylized Facts
C. Rebalancing Towards Services Impact on Aggregate Productivity
D. Allocative Efficiency and Innovation
E. Policies to Lift Allocative Efficiency and Productivity
F. Conclusion and Policy Recommendations
References
ANNEX
I. Sectoral Classification
REFORM OF THE EMISSIONS TRADING SYSTEM (ETS) IN CHINA
A. Introduction and Details about China’s ETS and Renewables Policy
B. Reform Scenarios
C. Results
D. Conclusion and Policy Recommendations
References
ANNEX
I. Technical Details on CPAT and the Power Plants Module
CHINA’S FOREIGN DIRECT INVESTMENT: INWARD AND OUTWARD
A. Introduction
B. Inward FDI
C. Outward FDI
D. Conclusions and Policy Recommendations
References
FIGURE
1. Specifics of Data Used for China
TABLE
1. Estimation Results from a Gravity Model for China’s Outward FDI
ASSESSING VULNERABILITIES OF CHINA’S CORPORATE SECTOR
A. Introduction
B. Financial Situation of Nonfinancial Firms
C. Financial Situation of Property Developers
D. Conclusion
FIGURES
1. Corporate and LGFV Debt
2. Nonfinancial Firms’ Corporate Leverage
3. Nonfinancial Firms’ Financial Vulnerabilities
4. Financial Vulnerabilities of Small Firms
5. Real Estate Firms’ Financial Vulnerabilities
APPENDIX
I. Data Description
