China's Finance Ministry Denounces Fitch Ratings Report

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China's Finance Ministry criticizes Fitch Ratings' report that downgraded its outlook to negative, stating that the country's deficit is at a moderate and reasonable level and risks are under control.

Workers wait for transport outside a construction site in Beijing, Tuesday, April 9, 2024. China’s Finance Ministry has denounced a report by Fitch Ratings that kept its sovereign debt rated at A+ but downgraded its outlook to negative, saying in a statement that China’s deficit is at a moderate and reasonable level and risks are under control. A woman reacts near a dragon sculpture outside a restaurant in Beijing, Tuesday, April 9, 2024.

The Finance Ministry said it was a “pity” that Fitch had downgraded its sovereign debt and faulted its methods, saying it had failed to take into account Beijing’s moves toward “appropriately intensifying, improving quality and efficiency” of its government spending. Tax relief measures and weaker property investments, which are usually a main source of local tax revenue, have eroded the government’s capacity to collect tax revenues to offset higher spending, the report said.

 

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