Will China fall into the "middle income trap"?

2011-4-9

 

Wang also said that China should encourage innovation and let innovation lead its economic growth, instead of just being the world's factory and market.

 

This coincides with the views of Martin Wolf, associate editor and chief economics commentator of the Financial Times.

 

"The danger of China falling into the middle income trap is quite small, but if that's going to be avoided, the aim for China over the next two or three decades is going to have to be very rapid increases in fundamental productivity and innovation," Wolf said in November at the annual Globalization and Economic Policy Center conference in Ningbo, east China's Zhejiang Province.

 

The Chinese government has made it clear in the 12th Five-Year Plan that technological advancement and innovation should be a significant pillar in accelerating the transformation of its economic development pattern.

Source:Xinhua