A view of Lujiazui, Shanghai Photo: VCG

An official of China's Ministry of Finance (MOF) extended appreciation on Monday for Moody's decision to affirm China's sovereign credit rating and upgrade its outlook to "stable," according to the official website of the MOF.

The official noted that the rating reflects Moody's strong recognition of the resilience of China's macroeconomic and fiscal strength in the face of external shocks, as well as the new momentum and progress in China's high-quality economic development.

Against the backdrop of rising protectionism and unilateralism, the rating outlook change reflects growing international market confidence in China's development prospects, an analyst said.

The MOF's remarks were made in response to media requests for comment regarding Moody's Investors Service's report on Monday, which maintained China's sovereign credit rating at "A1" and revised its outlook to "stable."

On Monday, Moody's Ratings (Moody's) affirmed the Chinese government's A1 long-term local- and foreign-currency issuer and senior unsecured ratings and the (P)A1 foreign-currency senior unsecured shelf rating and changed the outlook to stable from negative, said the ratings agency.

The stabilization of the outlook reflects our assessment that economic and fiscal strength will be resilient to ongoing domestic as well as trade and geopolitical challenges, said Moody's.

Among the factors behind the decision, the agency said that the affirmation of the A1 rating takes into account China's extremely large and diversified economy with a superior capacity for innovation, reflected in increasing competitiveness in higher value-added sectors that balance pressures from aging demographics.

Commenting on the latest ratings, the MOF official said that over the past five years, China's cumulative GDP increase exceeded 35 trillion yuan ($5.12 trillion), equivalent to creating an economic scale comparable to the Yangtze River Delta once again. Despite facing multiple risks and challenges, China's economy during the 14th Five-Year Plan (2021-25) period still achieved an average annual growth rate of 5.4 percent, contributing about 30 percent to global economic growth, said the MOF official. 

This is the first year of China's 15th Five-Year Plan (2026-30). In the first quarter of this year, China's economy recorded rapid growth of 5 percent, exceeding market expectations, the official said.

Against the backdrop of rapidly changing global trade conditions and rising geopolitical risks, the Chinese government has implemented a comprehensive package of macroeconomic policies and strengthened policy coordination, said the MOF official, noting that China's economy has withstood pressure and continued to move toward higher-quality and innovation-driven development, fully demonstrating the advantages of its vast domestic market, complete industrial and supply chain system, and strong export competitiveness. These factors also form the foundation supporting China's sovereign credit standing, the official said. 

The decision by Moody's to maintain China's sovereign credit rating and upgrade its outlook reflects once again international confidence in the stability of China's economy, as well as growing recognition by a major international rating agency of China's ability to navigate complex external conditions, Hu Qimu, a professor at the Maritime Silk Road Institute of Huaqiao University, told the Global Times on Monday.

Some other international rating agencies have also upgraded their forecasts for China's economy. For example, Fitch in March raised its 2026 China GDP growth forecast to 4.3 percent from 4.1 percent, citing stronger exports, domestic media outlet Jiemian News reported. 

The rating changes by international rating agencies haven't come out of the blue. Hu said that China's economy is large in scale and well-structured, with a solid foundation for long-term growth. Despite rising external uncertainties, it has maintained relatively stable growth, demonstrating strong resilience and resistance to shocks, said the expert.

China's economy is accelerating its shift toward innovation-driven growth. Emerging industries and high value-added sectors are showing strong momentum, analysts said, giving examples of the "new three items" - new-energy vehicles, lithium batteries, and solar cells, which Hu said have performed strongly, becoming a highlight of foreign trade growth.

"Moody's move indicates that international rating agencies' assessment of the quality of China's economic performance and policy stability is continuing to improve... It also reflects growing confidence in China's development prospects in global markets," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Monday.

Against a backdrop of heightened global economic volatility highlighted by rising protectionism and unilateralism, China has helped stabilize market expectations through effective macroeconomic policies and stronger policy coordination, said Zhou. Supported by its vast domestic market and complete industrial system, China has further strengthened the stability and resilience of its economy, the expert noted.