The International Monetary Fund has recently cautioned that China's current economic situation may potentially pose future threats to global growth and expansion. As of recently, China's stock market shakiness along with their slow economic growth has affected commodity prices drastically. Prices of certain commodities, such as oil and copper, are drastically declining which is negatively affecting exporters like Brazil and Russia. At the time of August 11th, when the Chinese Yuan was devalued, U.S. Secretary of the Treasury Jacob Lew advised against manipulating the currency. He warned this would give exporters an unfair advantage.

In the next couple of days, the Federal Reserve will be meeting to decide what to do with this year's interest rates. If the Federal Reserve raises rates for the coming year, it could potentially be worrisome for global economic growth. The IMF believes they should maintain loose monetary policies and growth-friendly fiscal policies. The Federal Reserve should make a decision driven by data in order to prevent and premature increases in interest rates.

Although China's current situation may be troublesome for overall global growth, there may be a positive spin to the global panic. India may actually be potentially benefitting from the economic spin due to India being one of the world's largest commodity importers. India believes that their investments will increase as commodity prices drop.

The pending economic condition will unravel in the days to come, with the Federal Reserve meeting. Thus, any positive or negative outcomes of China's economic uncertainty will continue to be established.

http://www.bbc.com/news/business-34136747
http://economictimes.indiatimes.com/news/international/business/china-crisis-poses-threat-to-global-economy-says-imf/articleshow/48796051.cms