China is playing a greater role in helping to maintain world economic growth, but needs currency reform and a re-balancing of its growth model. That's according to an IMF "Spillover Report", looking at the external effect of China's domestic policies.

The IMF says Chinese economic policies affect, and help stabilize the world economy, mainly through trade. However, the report also says China's export-oriented growth model could result in an increased export market share, potential over production, and stresses on corporate and bank balance sheets.

The report also highlights China's currency, saying appreciation is an important factor in re-balancing the country's growth model, with only limited spillover effects.