China’s economic policies and management have received a blow with Fitch Ratings downgrading its long-term foreign currency issuer default rating to ‘A’ from ‘A+’.
The downgrade reflects the deterioration of China’s public finances under the Chinese Communist Party (CCP) leadership, with government debt projected to reach a staggering 80% of GDP by 2029, more than double the 2019 level, according to people familiar with the Chinese economy.
“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.
Beijing has dismissed the downgrade as “biased” and not reflective of reality….
