Govt has room to 'mitigate shocks'

Senior IMF official: Stimulus could be used to boost domestic consumption

China could use more fiscal stimulus and allow for greater foreign exchange flexibility to minimize the negative impact on its economy if trade tension with the United States further escalates, the International Monetary Fund said on Thursday.

"The government has room to mitigate the shocks from external uncertainties and trade tensions by using fiscal policy," Alfred Schipke, the IMF's senior resident representative for China, said at a media briefing in Beijing.