The Sovereign credit rating of the Chinese government was recently upgraded by Standard and Poor’s as improving which is good news for the country of China.  Let’s start by explaining what a sovereign credit rating is as it applies to the Chinese government.  Essentially, countries issues bonds that are designed to raise money for the government to use.  For example, the United States could issue a sovereign bond to the Chinese government that they can use as money that needs to be paid back.

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