China Rejects Fitch Ratings' Downgrade

The Chinese Finance Ministry has strongly criticized Fitch Ratings for downgrading China's sovereign credit rating from "A+" to "A", labeling the decision as "biased" and not reflective of the country's economic realities. Despite acknowledging China's stable growth and its pivotal role in global trade, the ministry accuses Fitch of failing to provide an objective assessment.

Economic Recovery in Focus

China expressed deep regret over the downgrade, challenging its validity and asserting that international markets are well aware of the country's ongoing economic recovery. The ministry's statement underscores China's confidence in its financial stability and growth prospects.

Fitch's Concerns Over Debt

Fitch Ratings justified its decision by pointing to worsening public finances and an increasing debt burden, with projections showing China's debt-to-GDP ratio rising significantly over the next few years. Despite these concerns, Fitch maintained a stable outlook on China's economy, recognizing its resilience but cautioning about potential fiscal pressures.