Recently, an official from the Ministry of Finance (MOF) of China had an interview with journalists regarding Fitch Ratings’ decision to downgrade China’s sovereign credit rating. 

Q: On April 3, Fitch Ratings released a report announcing its decision to lower China’s sovereign credit rating from “A+” to “A”. What is the MOF’s view on this matter? 

A: During the review process, we have engaged in extensive and in-depth discussions with the Fitch rating team. While Fitch acknowledges that China has solid GDP growth prospects relative to peers and a pivotal role in global trade, it has rigidly adhered to its existing rating methodology. Its decision to downgrade China’s sovereign credit rating is biased. It fails to fully and objectively reflect China’s actual situation and the broad consensus in both domestic and international markets regarding the country’s economic recovery and positive outlook. We deeply regret this decision and do not accept it. 

Favorable conditions for China's economy remain unchanged, including our robust economic fundamentals, vast market size, strong economic resilience and significant growth potential, as does the overall trajectory of high-quality development. In 2024, China’s GDP reached 134.9 trillion yuan, growing by 5 percent, ranking among the highest growth rates of major global economies. At present, from the perspective of production factors, China’s talent dividend, capital stock, and technological progress continue to accumulate. In terms of structural transformation, emerging industries, urbanization, and market-oriented reforms present tremendous growth potential. From a macroeconomic policy perspective, the effectiveness of counter-cyclical adjustments is steadily improving, the benefits of deepening reform and opening-up are becoming increasingly evident, and the positive momentum of China’s economic development continues to strengthen and solidify.  

Since the beginning of this year, as macroeconomic policies continue to take effect, China’s economy has maintained a positive trajectory, with development quality steadily improving. Recently, both the IMF and the World Bank have raised their forecasts for China’s economic growth in 2025, while the United Nations and the OECD predict that China’s GDP growth this year will exceed 4.5 percent, aligning closely with the Chinese government’s target of around 5 percent. International capital markets are also reassessing Chinese assets, expressing confidence in China’s economic prospects. 

Overall, China’s endogenous growth drivers, market vitality, policy effectiveness, and development resilience have all been comprehensively enhanced, and the positive growth momentum is steadily strengthening, opening up new growth opportunities. Moving forward, China will continue to implement a more proactive fiscal policy and a moderately loose monetary policy, with a stronger focus on leveraging a comprehensive policy mix. Fiscal policy will be better coordinated with monetary, employment, industrial, regional, and trade policies, as well as reform and opening-up initiatives, to enhance policy synergy and provide stronger support for economic growth. The Chinese government has also reserved ample policy space and will dynamically adjust its policy toolkit in response to evolving circumstances to ensure the sustained and healthy development of China’s economy while creating more opportunities for the world.