Managing the Middle-Income Transition
Show Less

Managing the Middle-Income Transition

Challenges Facing the People’s Republic of China

Edited by Juhzon Zhuang, Paul Vandenberg and Yiping Huang

The growth model of the People’s Republic of China has been based on high investments, exports, low-cost advantage, and government interventions. This model has successfully transformed the country from a low-income to an upper middle-income economy. However, the model has generated contradictions that could undermine future growth. Making the transition to high income requires greater reliance on efficiency and productivity improvement, innovation, and market competition. This book examines the challenges faced by the People’s Republic of China in sustaining robust growth, and policy options for making a successful transition to a high-income economy to avoid getting caught in the middle-income trap.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 6: The global dimension of rebalancing and sustaining growth

Ligang Song


The People’s Republic of China (PRC) faces some extremely demanding challenges in addressing its economic imbalances, sustaining growth, and becoming a high-income country. Now the world’s second largest economy, the PRC is heavily integrated with other economies in trade, finance, resource procurement, and environmental concerns—and these ties significantly influence its policy options and economic strategies. While managing global imbalances will be necessary for achieving sustained, equitable, and balanced growth, this alone will not be sufficient for attaining this pattern of growth or for avoiding a middle-income trap. Instead, the country should aim to achieve these goals by deepening domestic reform and becoming a driver of global economic integration by strengthening an open, rules-based multilateral economic system. But more effort is needed for attaining these goals.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.