The middle income trap
Xi Jinping claims that China has achieved a tremendous feat by raising the standard of living of its citizens. "No other country can lift hundreds of millions of people out of poverty in such a short time," he said in 2021, describing the achievement as "a human miracle that will go down in history." However, another huge challenge awaits; keeping China out of the so-called “middle-income trap” - a stage of economic development at which wage levels stagnate. If that happens, it would prevent ...