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China Daily Website

Can China escape the middle-income trap?

Updated: 2013-03-15 09:23
(TIME)

Quote from TIME magazine:

"The topic of growth and people's welfare is at the center of this year's National People's Congress, taking place right now in Beijing.

That's all very nice. And in the end, a slowdown in China could well be inevitable. Making the transition from an investment-led to a consumption-led economy, as Wen preaches, will likely result in slower overall growth, at least while the shift is taking place. Demographics are working against China's future performance as well. As a result of China's controversial one-child policy, the population is aging quicker than it otherwise would have, which will drag on growth in coming years.

And then there is the possibility China could tumble into the "middle-income trap."

 

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