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IMF warns of China overcapacity amid improved economic outlook

TOKYO — China’s economic performance has been better than expected this year, but overcapacity in its manufacturing sector is among the key risks that continue to weigh on the country and the rest of Asia, according to the International Monetary Fund.

“China is a source of both upside and downside risks,” Krishna Srinivasan, IMF’s director of the Asia and Pacific department, said at a news conference in Singapore on Tuesday as the fund released its latest economic outlook report for the region.

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