China's strong growth of the past has largely been debt-fueled, driving up its debt load to 235 percent of GDP in 2016. That needs to be cut as long as the debt is still manageable, IMF economist Geoff Gottlieb told DW.
The International Monetary Fund criticized Trump's tariffs plans and warned of their negative impact. The IMF also said by 2020 US economic growth will dip to lower levels than the White House predicts.
Beijing has announced retaliatory measures after the US imposed fresh tariffs on Chinese technology products. Beijing announced tariffs on a $34 billion list of American goods including soybeans and whisky.
International Monetary Fund (IMF) Managing Director Christine Lagarde believes China's "Belt and Road" is a good idea, but she also warned about saddling countries involved in the project with too much debt.
The global emergency lender sees the world economy on a robust growth path in the coming two years. However, that outlook faces a severe risk if trade tensions between the US and China escalate in the month ahead.
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