Moody's downgrading due to blinkered view

The disappointment the Chinese government has expressed at ratings agency Moody's move to change its outlook on Chinese sovereign bonds to negative on Tuesday is fully justified.

Moody's said the downgrade, its first for China since 2017, reflects the risks from lower medium-term economic growth and the financing troubles of local governments and State-owned enterprises.

The ratings agency has shown that as an outside observer using Western standards to gauge China's economic realities it doesn't have the necessary objectivity and perspective to have the proper understanding of China's economic operations, leading it to arrive at partial conclusions.