Finance Ministry deeply regrets, rejects Fitch Ratings downgrade

China

Finance Ministry deeply regrets, rejects Fitch Ratings downgrade

2025-04-04 16:56 Last Updated At：23:47

The Ministry of Finance said on Thursday that it deeply regrets and does not recognize a ratings downgrade by Fitch Ratings.

The statement by the ministry came after the ratings company said in a report on Thursday that it has downgraded China's long-term foreign-currency issuer default rating to 'A' from 'A-plus', with a stable outlook.

The downgrade was announced despite Fitch's recognition that China has a more robust economic growth prospect and a key position in global trade based on communications between the company and the Chinese side, the ministry said in a statement, while adding that the downgrade is biased and does not fully and objectively reflect the actual situation in China.

The ministry argued that China's 5 percent GDP growth in 2024 was among the best in major world economies, and that China is currently further building up advantages stemming from talent dividends, capital and technological progress. The ministry also pointed out that China's emerging economic sectors, urbanization and market-oriented reforms represent further growth potential. Various macro policies have continued to make an impact this year -- with the economy extending a good growth trend and the quality of development steadily improving, it said.

Notably, the International Monetary Fund and the World Bank recently both made improved revised projections for China's economic growth in 2025.

Meanwhile, the United Nations and the Organization for Economic Cooperation and Development have forecast that China's GDP growth this year will be above 4.5 percent, close to the growth target of around 5 percent set by the Chinese government.

Film IP fuels expansion of consumer market

China's movie industry is increasingly deriving its earnings from broader consumer economy.

Released during the 2025 summer season, the film "Nobody" became China's highest-grossing two-dimensional animated film -- and its success went beyond theaters.

Through licensing and brand partnerships, the movie has generated 2.5 billion yuan (about 358.3 million U.S. dollars) in retail sales to consumers, with more than 800 licensed products on the market.

Ranging from plush toys to food and home goods, the movie-related merchandise can be purchased from over 3,000 online and offline outlets.

Meanwhile, souvenir stores are crowded at Shanghai Disneyland's Zootopia themed land, with hats, plush toys, and collectibles seeing steady demand from visitors.

"China's film industry is no longer defined by box office revenue alone. It has become a new growth engine that links and energizes multiple cultural sectors. At the heart of every successful film is strong storytelling. High-quality productions create cultural value, which in turn enhances the commercial value of intellectual property and opens up new consumption opportunities. I believe China's film industry delivered an outstanding performance in the past year," said Chen Xiaoda, vice dean of Shanghai Vancouver Film School.