China welcomes Moody's A1 rating affirmation and outlook upgrade to stable

Moody's Ratings has affirmed China's A1 sovereign credit rating and revised the country's outlook up to stable from negative. An official with China's Ministry of Finance commended this decision on Monday, noting that it reflects Moody's strong recognition of the resilience demonstrated by China's macroeconomy and fiscal strength in the face of external shocks, as well as the country's new drivers and the progress of its high-quality economic development.

The official said that over the past five years, China's GDP has increased by more than 35 trillion yuan ($5.12 trillion), equivalent to creating an economy the size of the Yangtze River Delta.

Despite multiple risks and challenges, China maintained an average annual growth rate of 5.4 percent during the 14th Five-Year Plan (2021-25) period, contributing around 30 percent to global economic growth.

This year marks the start of China's 15th Five-Year Plan (2026-30), and the economy achieved a strong growth rate of 5 percent in the first quarter, exceeding market expectations.

Against the backdrop of rapidly changing global trade conditions and rising geopolitical risks, the Chinese government has implemented a package of macroeconomic policies and strengthened policy coordination. As a result, the economy has withstood pressure while moving toward more advanced and higher-quality development, fully demonstrating the advantages of its vast domestic market, well-developed supply chain system, and strong export competitiveness — key foundations supporting China's sovereign creditworthiness, the official said.

Going forward, China will further deepen comprehensive reforms, continue to advance economic restructuring, enhance fiscal sustainability, and accelerate the development of new quality productive forces. These efforts will help solidify the foundation for stable economic performance and enable China to effectively respond to external uncertainties with sustained, sound economic and social development, thereby contributing more to global economic recovery and prosperity, the official said.