An official from the Ministry of Finance (MOF) answered a journalist’s question regarding Moody’s Investors Service’s decision to maintain China’s sovereign credit rating at “A1” and revise upward its outlook to “stable”.

Journalist: On April 27, Moody’s Investors Service released a report deciding to maintain China’s sovereign credit rating at “A1” and revise its outlook up to “stable”. What is the MOF’s view on this matter?

MOF: We appreciate Moody’s decision to maintain China’s sovereign credit rating and revise the outlook to “stable”. This rating action reflects Moody’s high recognition of the strong resilience demonstrated by China’s macro-economy and fiscal strength in the face of external shocks, as well as the new drivers and new progress in China’s high-quality development.

Over the past five years, the incremental growth of China is expected to exceed 35 trillion yuan, which is equivalent to creating another Yangtze River Delta economic region from scratch. Despite multiple risks and challenges, China’s economy maintained an average annual growth of 5.4 percent during the 14th Five-Year Plan period (2021-2025), contributing around 30 percent to global economic growth. As the opening year of the 15th Five-Year Plan period (2026-2030), 2026 has started with China’s economy posting strong first-quarter growth of 5 percent, exceeding market expectations. Against the backdrop of sharp changes in the global economic and trade environment and rising geopolitical risks, the Chinese government has implemented a package of macro-economic regulation policies and strengthened policy coordination. The Chinese economy has withstood pressure while moving towards new growth drivers and higher-quality development, fully demonstrating the strengths of its mega-size market, complete industrial and supply chain systems, and strong export competitiveness. These are also the foundations supporting China’s sovereign credit.

Looking ahead, China will further deepen reform on all fronts, continue advancing economic structural transformation, steadily enhance fiscal sustainability and accelerate the cultivation and expansion of new quality productive forces. We will consolidate the foundation for stable economic performance, effectively address external uncertainties with the certainty of sustained and sound economic and social development, and make greater contributions to global economic recovery and prosperity. We will also continue to maintain communication with Moody’s Investors Service and provide ongoing updates on the sound performance of China’s macroeconomy.