IMF senior official says restructuring is essential for country to avoid debt crisis

China needs to put more effort into resolving rising corporate debts in order to sustain growth in the medium to long run, a senior representative of the International Monetary Fund said on Monday.

"China truly stands out in implementing reform compared with other countries," said Alfred Schipke, the IMF's senior resident representative in China. "The nation's contribution to world economic growth is still extremely large."

Schipke said that "significant progress" has been made in rebalancing and reform, referring to progress made in policy adjustment at the top level. For example, reform of the Budget Law helps improve local governments' bond budget transparency. There have also been efforts to bridge the gap between the central and local governments.