Research On The Problem Of China Steps Over The Middle-Income Trap

In the 21 st century,China’s economic growth has indeed slowed down. It is not only caused by the impact of the financial crisis, but also the imperfecti on of Chinese internal economic development model itself. As a whole, China has embraced the take-off stage economic since 1978 and keeps the average an nual GDP growth rate of 9.8% for more than 30 years. The GDP growth in 2014 dropped to 7.4 % which is the lowest level over the past 20 years. The main contradiction is not economic growth of China’s economic development.China has entered a “new normal” that differs from the past, the government a lso takes the “structural adjustment, ensuring growth” as the primary task of ec onomic development strategy. During the process, we should absorb internationa l experience and take positive measures to prevent and step over the "middle-i ncome trap". This paper is divided into five parts, the research background of this article is introduced in the first part, which also compares the characteristi cs of the middle-income trap and presents the purpose and significance of this study. The second part reviews the actual condition of middle-income countrie s, and combines with the cases of Latin American countries to draw lessons fr om the failure, as well as analyzes the way in which South Korea successfully become the developed country and span the middle-income trap. The third par t combines China’s actual condition to think the risk that China was caught in the middle-income trap from five aspects: economic model, industrial structure,income distribution, international competitiveness and the environment. The fo urth part makes a brief introduction of five positive roles that middle-income c ondition has brought to China, thereby promoting China spans the middle-inco me trap. The fifth part aims at China’s current reality and proposes the develo pment strategies to span the middle-income trap from the transformation metho d of economic growth, domestic demand boost, the improvement of internation al competitiveness of import and export, and technological upgrade promotion using international investment, respectively.