
Global ratings agency Fitch downgraded China鈥檚 long-term foreign-currency issuer default rating from 鈥楢+鈥� to 鈥楢鈥� on Thursday, noting weakening finances and debt concerns.
鈥楾he downgrade reflects our expectations of a continued weakening of China鈥檚 public finances and a rapidly rising public debt trajectory during the country鈥檚 economic transition,鈥� Fitch said in a statement.
It said China鈥檚 rating outlook was stable.
China鈥檚 Ministry of Finance criticised the forecast in response.
The 鈥榙owngrade of China鈥檚 sovereign credit rating is biased鈥�, a ministry spokesperson said. 鈥榃e deeply regret this and do not recognise it.鈥�
While the ratings downgrade came as the United States imposed its latest round of sweeping global tariffs, Fitch said Thursday鈥檚 forecast did not include the levies because there was 鈥榰ncertainty about their impact鈥�.
In his trade salvos, Trump unveiled particularly stinging 34 per cent tariffs on China, one of Washington鈥檚 largest trading partners.
The new tariffs come on top of a 20 per cent rate imposed last month.
US duties have threatened to harm China鈥檚 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 per cent this year, although the intensified trade war will likely mean China cannot peg its hopes on its exports, which reached record highs in 2024.