Author(s)

Yunyan Wu

Corresponding Author

Yunyan Wu

ABSTRACT

China is in substantial risks of falling into the “middle-income trap”. This paper states the concept and causes for the “middle-income trap”, analyzes the internal confliction faced by China’s development, and puts forwards three major risks existing in China’s economic growth model, namely big economy and small engine, factor input and factor return, and resource dependence and resource capacity. China’s economy is confronted with the double restrictions of internal resource bottleneck and external market shrinkage, and faces a high risk of falling into the “middle-income trap”, which should be treated with great caution. In this context, changing the economic development model serves as an essential means of overcoming the so-called “middle-income trap”.

KEYWORDS

Middle-income Trap, Economic Model, Risks