China's Economy Shows Signs of Slowing, and Trade Surplus Soars 2. January's economic figures show signs of slowdown for China's economy. During the past 18 months, the Chinese government has been trying to slow the over-heated economic growth by tightening credit to discourage spending and investment expansion.
Some concerns remain, however.
The inflation is still far above a healthy level. On Thursday, China banned local governments from running budget deficits. In its rating statement, the rating agency cited China's proven record of economic development, its ability to manage the foreign debt load, and a cautious approach to reform the economy as the agency's grounds for an optimistic China. China's credit ratings could be further upgraded over the next two or three years, according to the statement. China and U.S. claim that the U.S.-China trade talks have made progresses and will resume at higher level on Wednesday.