How China Across The Middle-income Trap

Recently， the concept "middle-income trap" is widely watched， particularlyin the area of economy. The so-called "middle income trap"， Refers to aPhenomenon when a country or region’s per capita income reach to the middle level，contradictions accumulated by Rapid economic development break out concentratedly.The old mode of development and growth can not deal with the systemic riskeffectively，so the economic growth stagnated，and the nation can not enter the ranksof high-incomes. Brazil， Argentina， Mexico， Chile and Malaysia for example，get Into the ranks of middle-income countries in the1970s， But until recently，These countries are still struggling in the stage of per capita GDP that from3000to$5000. China’s per capita GDP reaches to$4400in2010， This means our country isin the stage of development which is from low-middle to high-middle income. In thisprocess， we has also faced some social problems such as the distribution of incomedisparity， corruption problem， severe urban-rural dual structure， environmentalpollution， ecological destruction， public services and so on. Sustainable economicand social development issues is the essence of this problem.In this paper， by analysis the reasons which may lead to middle-income trap"We think the so-called "trap" is nothing but some of the economic problem causedby social and economic contradictions which can not be solved during the long-termof development process.However， by Resolve these contradictions well， andthrough the guidance of government policy， we will be able to successfully cross themiddle-income trap. Specifically as these conditions， it include： Industrial structureto be upgraded， the irrational income distribution， the mode of growth is notsustainable， the political system is not suited to the healthy and rapid development ofeconomy. These issues are often mixed together， interrelated and influence eachother.and， the problems are all resolved， they may restrict the solution of otherproblems. On the other hand， more or less，these factors have the relationshipsbetween urbanization， And if urbanization issues can not be resolved，it can also induced other form ofcontradictions. Such as： the process of urbanization’s lag will limit the real estateindustry， the normal development of the tertiary industry and high-tech industry，thus affecting the issues that related to the upgrading of industrial structure.However，excessive urbanization will be a slum and financial burden that limit thelong-term development of China’s economic. Different process of urbanization willlead to a different pattern of income distribution. Thus affecting the normal andhealthy development of national economy. Urbanization can also improve the nationaleconomy by the driven of domestic demand， sustainable development， and totalfactor productivity， at last urbanization will impact the further rapid development ofthe national economy through the reform of the political system. Urbanization whichif we do not pay attention or the process can not be handled properly，then it is boundto affect the further healthy and rapid development of China’s economy， even cancreate a very negative social， economic and political turmoil. And eventuallybecome a reality so that the middle-income trap.Based on the above， This article will put the urbanization into perspective，find the key to success in the future across the middle-income trap is the conclusion ofthe urbanization through the analysis of the factors of the urbanization of China whichis facing middle-income trap contact whit finally the policy reference.