ISSN: 1824-2979
by Helmut Wagner
Start page: 165 - End page: 188
Keywords: Middle-income trap; economic development; China; structural change; tertiarization; rebalancing
Jel code: O1; O4; O5; P2; P5
DOI: 10.25428/1824-2979/201502-165-188
After two decades of very high economic growth rates, China has now reached the so-called mid-income range or 'trap', i.e. a development level where it has to expect slower economic growth rates (a 'New Normal') for the future. Associated with that is a structural change towards tertiarization which requires some fundamental rebalancing of China's economy. Overcoming this mid-income trap and further catching up to the most advanced countries in the world is a very demanding task. In order to succeed China has to efficiently manage the mentioned rebalancing (structural change) process towards tertiarization and to undertake many fundamental structural reforms.