China's Firm Stand Against Fitch's Credit Rating Downgrade

The Chinese Finance Ministry has openly criticized Fitch Ratings for its recent decision to downgrade China's sovereign credit rating from "A+" to "A". The ministry labeled the move as "biased" and argued that it does not accurately reflect the country's economic strengths and stability.

China's Economic Reality Versus Fitch's Assessment

Despite recognizing China's role in global trade and its stable growth, Fitch's rating approach was deemed insufficient by Chinese authorities. The ministry expressed deep regret over the decision, emphasizing that international markets are well aware of China's ongoing economic recovery and resilience.

Fitch's Concerns Over China's Fiscal Health

Fitch justified its downgrade by pointing to concerns over China's public finances and increasing debt levels. The agency projects a rise in China's debt-to-GDP ratio from 60.9% in 2024 to 74.2% by 2026. While maintaining a stable outlook, Fitch warned of potential fiscal pressures ahead.