Moody’s Ratings affirmed China’s A1 sovereign credit rating on Monday and upgraded the outlook to stable. The Ministry of Finance welcomed the decision, stating it recognizes China’s macroeconomic resilience and fiscal strength amid external shocks. Economists attribute this to technological innovation and robust policy support.
The Ministry of Finance said the rating affirmation reflects Moody’s recognition of the strong resilience of China’s macroeconomy and fiscal strength amid external shocks, as well as new drivers and progress in high-quality development.
Against a backdrop of rapidly shifting global trade conditions and geopolitical risks, the Chinese government has rolled out macroeconomic measures and strengthened policy coordination. This has allowed the economy to withstand pressures and move toward advanced development, demonstrating advantages of its vast domestic market, well-developed supply chains, and strong export competitiveness—key pillars of its sovereign credit profile, the ministry noted.
Looking ahead, the ministry said China will deepen reforms, enhance fiscal sustainability, and accelerate the development of new quality productive forces to solidify its economic foundation and better cope with external uncertainties.
Moody’s cited China’s vast and diversified economy, along with its strong innovation capacity evident in rising competitiveness across higher value-added sectors. Jeremy Zook, lead analyst for China at Fitch Ratings, highlighted China’s dominant position in global manufacturing and supply chains, plus major expansions in renewable energy and electric vehicle sectors.
Over the past five years, China’s GDP has expanded by more than 35 trillion yuan ($5.1 trillion), achieving an average annual growth rate of 5.4 percent during the 14th Five-Year Plan period and contributing around 30 percent of global economic growth, according to the Ministry of Finance. Xiong Yi, chief economist for China at Deutsche Bank, noted that first-quarter GDP growth of 5 percent exceeded market expectations, driven mainly by domestic investment and exports, with the property sector showing early signs of stabilization.
