China has enough economic wiggle room to contend with the challenges created by ongoing trade tensions, Vitor Gaspar, Director of the International Monetary Fund (IMF)'s fiscal affairs, told CGTN during an annual meeting between the IMF and World Bank on the island of Bali in Indonesia from Monday to Sunday.
China is aware of the negative impacts brought by current trade disputes on its economy and the impacts will be partially offset by expansionary fiscal policy in China since the country has the room to adjust fiscal policies, he said.
"At the same time, it's crucial for China to continue engaging in the rebalancing the economy."
He said that the crucial challenge for China is to improve the quality of its growth.
China needs to rebalance its economy from investment to consumption, from credit-based growth to growth compatible with gradual process of deleveraging, according to Gaspar.