BEIJING: Global ratings agency Fitch downgraded China's long-term foreign-currency issuer default rating from 'A+' to 'A' on Thursday, noting weakening finances and debt concerns.
“The downgrade reflects our expectations of a continued weakening of China’s public finances and a rapidly rising public debt trajectory during the country’s economic transition,“ Fitch said in a statement.
It added that China's rating outlook was stable.
While the ratings downgrade came as the United States imposed its latest round of sweeping global tariffs, Fitch said Thursday’s forecast did not include the levies because there was “uncertainty about their impact”.
In his trade salvos, Trump unveiled particularly stinging 34 percent tariffs on China, one of Washington's largest trading partners.
The new tariffs come on top of a 20 percent rate imposed last month.
US duties have threatened to harm China's fragile economic recovery as it struggles with a long-running debt crisis in the property sector and persistently low consumption.
Beijing is pushing for economic growth of around five percent this year, although the intensified trade war will likely mean China cannot peg its hopes on its exports, which reached record highs in 2024.
Source: The Sun Daily
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