The "Middle-income Trap" Risks Of China And Countermeasures Research

Although the proposition "Middle-income trap" is proposed and attention in recentyears, but the possible reasons and corresponding measures of the stagnation of economic andsocial development in long ago were manned explorations."Middle-income trap" means,after a country developed from a low-income nation to a middle-income nation, Unable tosmoothly realize the change of the pattern of economic development, lead to economicgrowth momentum is not enough, growth stagnant or falling finally appears, cannot keepingthe high rate growing of the economic. At this stage, national economic imbalance will beaccompanied by a series of social problems. After many developing countries have get ride of"Poverty trap" and per capita income was4000dollars nearby, accumulation during theperiod of rapid development of various economic and social contradictions concentratedoutbreak. Many developing countries can not overcome their own economic contradiction atthis time, the chance of develop strategy changing was delayed or missed, that causedeconomic growth stagnated even fall back and can’t go to high-income countries. Thus saidinto a "Middle-income trap" stage.The innovation of science and technology, Upgrading of the industrial structure, Adjustthe pattern of economic development, The transition of the function of the government causeJapan and Korea break out of the trap; and the lack of system and the innovation of scienceand technology, Industry structure imbalance and relying too much on the outside world leadto some Latin American countries and southeast Asian countries sank into the mire ofeconomic stagnation. This article through to the domestic and foreign current researchsituation about the "Middle-income trap", concluded that China faces the potential risk of"middle-income trap", the advantage of avoiding risk and countermeasures in China.This paper consists four parts:The first part of the "Middle-income trap" overview of the whole problem. Points outthat the origin of the "middle-income trap" and the typical characters of "Middle-income trap"countries. From the perspective of the theory basis. System carding these typical countries fellinto the root cause of the "Middle-income trap", lays theoretical foundation for the study ofthe problem.The second part is China faces the potential risk of "Middle-income trap". Per capitaincome in2010of China is4400dollars nearby, becomes one for middle-income countries,still faced with the potential risk of economic, social, and political.The third part analyzes the China advantages to avoid the "Middle-income trap". China is a socialist country, is taking the socialist road with Chinese characteristics, and the socialsystem is different with the vast majority of developing countries. China has advantages itselfto avoid the "Middle-income trap", first is the socialist political system and economic systemadvantages coexist, another is China has the advantage of promoting sustainable economicdevelopment.The fourth part of the system expounded China’s countermeasures to avoid the"Middle-income trap". In view of the above analysis of the potential risk to point out theChina’s response to the "Middle-income trap" potential risk countermeasures. Includestrengthen independent innovation ability, adjustable structure implementation way; improvethe total factor productivity, mining potential demographic dividend; reform of the incomedistribution system, to narrow the gap between the rich and the poor; to speed up theurbanization process, social class human-beings; perfect the employment policy, increase theemployment of urban and rural residents; deepen reform to perfect the system, for crossingthe "trap" cleared six aspects of countermeasure.Through to the "middle-income trap" in-depth research and analysis, As long as adhereto the correct way of economic development and constantly perfect political system, China isto leap trap, become one of the high income countries.