[CEAMeS DP13 ] – “Structural change, rebalancing and the danger of a middle-income trap in China”
CEAMeS Discussion Paper No 13 | 2018
China is currently experiencing a structural change toward tertiarization and an implied growth slowdown associated with it. The paper investigates whether this growth slowdown is merely cyclical or a negative trend, and further what China is doing or should do to avoid falling into a “middleincome trap,” a problem many emerging economies have experienced in recent decades. The pitfalls of the current “soft” rebalancing policy in China are analyzed in the context of this development.