Moody's Ratings maintained a negative outlook for China in its latest report on Monday, citing changes in the global trade environment. The agency predicted that tariffs on Chinese exports to major markets will stay higher than at the beginning of 2025.
Moody's noted that the Chinese government is making progress in fostering higher-productivity sectors, but that the country still largely depends on exports due to low domestic consumption, warning that the government may resort to fiscal measures that lead to higher-than-expected deficits and debt. Although the ratings agency predicted China's growth will slow to 3.5%-4% by 2030, it maintained its A1 rating, citing Beijing's efforts to downsize its ailing property sector and boost innovation.
