The World Bank has removed a chapter from a report on China's economy issued on Wednesday that called for urgent steps to reform the country's "distorted" financial system, saying it had not been properly reviewed before publication.
The incident risks heightening tensions between China and the western-dominated World Bank and International Monetary Fund, even as China launches its own development bank seen as an attempt to create parallel institutions over which it can exert greater control, writes Andreas Paleit.
The redacted chapter, titled "Special Topic: Reform Priorities in China's Financial Sector", was included in the original version of the bank's China Economic Update but has since been removed.
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