While every news outlet is making sense of "reciprocal tariffs" and the resultant ramifications, a credit rating service (yes, I have railed against them in the past so this is to be taken with the usual cautions) downgrades the Paper Dragon. Note the "rising public debt" trajectory" language.
Managing the political and social fallout from the coming 3-5 quarters of chaos will be a tall order for the CCP.
Yuan Falls Versus Dollar as Fitch Downgrades China’s Rating to A
2025-04-03 12:45:46 GMT
By Nour Al Ali
(Bloomberg) -- The Chinese yuan fell further against the US
dollar, underperforming all major peers, after Fitch downgraded
China’s rating to A from A+. The outlook is stable.
Fitch said the downgrade reflects their “expectations of a
continued weakening of China’s public finances and a rapidly
rising public debt trajectory.” Meanwhile, China pushed back and
said the downgrade does not fully reflect the country’s economic
recovery momentum, calling it “biased”.
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