A Note on the Middle Income Trap
In the last couple of years, a number of China political observers have commented on the dangers to China of the middle income trap. The fear is that the Chinese economy will fall into the trap. Since economic growth is the remaining claim to legitimacy for CCP, a substantial slowdown from real growth rates of 6 to 15 per cent per year, which obtained in the last forty years, will be disturbing to the harmony that keeps CCP in power.
In what follows I am not making direct claims for or against the middle income trap in China, only describing the concept.