Radio Television Hong Kong (RTHK, a top government-owned broadcasting organization based in Hong Kong) recently reported on April 3 that international rating agency Fitch had lowered China’s sovereign credit rating from A+ to A.
Fitch’s China rating changed with a stable rating outlook to reflect expectations of continued weakness in China’s public finances and rapid increase in public debt. Experts anticipate that a global economic slowdown caused by the U.S. administration’s tariff hikes will negatively impact the Chinese economy.
China’s Ministry of Finance responded that the Fitch analysis was biased and “could not fully and objectively reflect China’s actual situation.” The Ministry also indicated that the rating “does not reflect the global and unanimous perception of China’s economic improvement.” Thus, the Ministry expressed “deep regret and disapproval” of the rating. The Chinese government reportedly “had a lot of in-depth communications with the Fitch Ratings team” and “has reserved sufficient policy space” to promptly study and dynamically adjust policies accordingly.
Fitch says the impacts of the latest U.S. reciprocal tariffs have not been factored into the new rating.
Sources:
(1) RTHK, April 3, 2025
https://gbcode.rthk.hk/TuniS/news.rthk.hk/rthk/ch/component/k2/1798856-20250403.htm
(2) Xinhua, April 3, 2025
http://www.news.cn/fortune/20250404/7d54562665984ef7b65b46b65d06c6bf/c.html