Hank Paulson: Why China's economy is slowing

Hank Paulson Interview Pic

Former Treasury Secretary Hank Paulson tells CNBC the growth model powering China's economy is running out of steam.

Paulson, author of the new book "Dealing With China: An Insider Unmasks the New Economic Superpower," said in an interview on CNBC's " Squawk Box " that the world's second-largest economy is too reliant on exports and municipal debt to build infrastructure. 

Rebooting China's economy is easier said than done, however, he said.

China's economy grew at its slowest pace since 2009, building the case for further stimulus from policymakers. The government there said Wednesday gross domestic product expanded 7 percent in the three months to March.

Read More China grows at slowest pace since financial crisis

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