The Chinese economy will continue to face more volatility as the country wrestles with credit problems, says New Zealand's Finance Minister Bill English.
"There's clearly a will [in China] to allow some defaults to try and work through the credit build up," English told CNBC Asia's "Squawk Box" on Tuesday.
"As an economy selling into China, we're expecting more volatility in the economy in general, but still reasonably solid consumer demand," he added.
The stability of China's financial sector has been in focus in recent months after a near high-profile failure of a trust product, which was marketed by local lender ICBC, in January. Earlier this month, China experienced its first domestic bond default when Shanghai Chaori Solar Science & Technology Co was unable to make an 89 million yuan ($14.5 million) interest payment.
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In addition, recent economic data has pointed to slowing growth momentum. This has raised speculation that authorities may provide monetary or fiscal stimulus to support growth.