Fitch Ratings has made adjustments to China's economic outlook, shifting its Long-Term Foreign-Currency Issuer Default Rating (IDR) from Stable to Negative, while affirming the IDR at 'A+'.

Amidst a transition away from property-dependent growth towards a sustainable model, China faces escalating risks to its public finance landscape. The country grapples with uncertain economic trajectories, prompting Fitch to reassess its stance. Fiscal deficits, coupled with mounting government debt, have eroded fiscal buffers, raising concerns from a ratings standpoint. Fitch anticipates an amplified role for fiscal policy in bolstering growth in the foreseeable future, potentially contributing to a continuous ascent in debt levels.

And now do the Eurozone and the US...