How Can China Overcome the Middle-income Trap?
Abstract
China has experienced rapid economic development in the past few years and has become an upper-middle-income country. Becoming a high-income country is a difficult process. All middle-income countries should avoid falling into or overcome the middle-income trap. However, China inevitably fell into the middle-income trap. This work focuses on the methods of overcoming the middle-income trap in China. This work compares China and other countries that are facing or faced the same problem that China has met. Then, see if China can emulate other countries’ solutions. The conclusion drawn from the work is that China needs to implement policies to overcome the middle-income trap, like enhanced technology introduction and financial support for emerging technology industries, increasing the minimum wage, etc. This work points out and analyzes some of the problems facing China today and lists some practical solutions or policies that could be feasible to help China become a high-income country.
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