The Ministry of Finance said on Thursday that it deeply regrets and does not recognize a ratings downgrade by Fitch Ratings.
The statement by the ministry came after the ratings company said in a report on Thursday that it has downgraded China's long-term foreign-currency issuer default rating to 'A' from 'A-plus', with a stable outlook.
The downgrade was announced despite Fitch's recognition that China has a more robust economic growth prospect and a key position in global trade based on communications between the company and the Chinese side, the ministry said in a statement, while adding that the downgrade is biased and does not fully and objectively reflect the actual situation in China.
The ministry argued that China's 5 percent GDP growth in 2024 was among the best in major world economies, and that China is currently further building up advantages stemming from talent dividends, capital and technological progress. The ministry also pointed out that China's emerging economic sectors, urbanization and market-oriented reforms represent further growth potential. Various macro policies have continued to make an impact this year -- with the economy extending a good growth trend and the quality of development steadily improving, it said.
Notably, the International Monetary Fund and the World Bank recently both made improved revised projections for China's economic growth in 2025.
Meanwhile, the United Nations and the Organization for Economic Cooperation and Development have forecast that China's GDP growth this year will be above 4.5 percent, close to the growth target of around 5 percent set by the Chinese government.
Finance Ministry deeply regrets, rejects Fitch Ratings downgrade
Finance Ministry deeply regrets, rejects Fitch Ratings downgrade
A German expert urged joint efforts of the international community to remove trade barriers caused by the U.S. unilateral tariff imposition and safeguard free trade.
Amid widespread opposition, U.S. President Donald Trump signed an executive order on the so-called "reciprocal tariffs" on April 2, imposing a 10-percent "minimum baseline tariff" on all trading partners and higher rates on certain countries.
The order took effect on April 5, leaving all imports subject to 10 percent additional tariffs, except as otherwise provided.
The U.S. also imposed an "individualized reciprocal higher tariff" on the countries and regions with which it "has the largest trade deficits".
Bernd Einmeier, an expert with Germany's ThinkTank Networks GmbH and Co. KG, said the U.S. tariff move will not only pose a challenge to the traditional transatlantic partnership, but also cause losses to itself.
"The situation we are currently experiencing in Europe is indeed unprecedented. The transatlantic relationship has never sunk to such a low point. The unilateral global trade war initiated by the United States has seriously undermined the growth of the world economy and is undoubtedly a wrong path. The stock market plunged in response, and the American people have also suffered a lot," he said.
Einmeier said it is the only right path to prosperity and stability for international community to adhere to dialog and cooperation and uphold the principle of free trade.
"We believe that the international community should join hands to address the current situation, and take coordinated actions to eliminate trade barriers caused by the unilateral tariff hikes imposed by the United States, safeguard free trade and ensure the smooth flow of goods. At present, it is urgently needed to restore rationality to free trade," he said.
The U.S. tariffs have sparked widespread criticism from the German media, business and political circles.
As Handelsblatt reported on Saturday, Friedrich Merz, Germany's incoming chancellor , believes that the financial crisis is bound to occur, but the specific time and incentives are not clear.
He said Trump's policies have increased the risk that the next financial crisis will come earlier than expected, and Europe should come up with a viable response.
Merz's conservative block of CDU/CSU and the Social Democratic Party (SPD) on Wednesday agreed on a coalition deal to form a new federal government.
Following the coalition agreement, Merz is expected to be elected chancellor next month.
German expert urges joint response to trade barriers caused by US tariffs
German expert urges joint response to trade barriers caused by US tariffs
