How to beat the middle-income trap

According to the World Bank, high-income economies (with per capita gross national income of $12,236 or more) include the United States, Western Europe and Japan, while upper middle-income economies (per capita gross national income between $3,956 and $12,235) include Turkey, Russia, Brazil and China.

China entered the ranks of the upper-middle-income countries in the early 2010s, and it has great potential to overcome the middle-income trap. First, its unprecedented growth record speaks for itself. Second, the rebalancing of the economy, from exports and investment to consumption and innovation, is proceeding according to the expected trajectory. Third, new growth targets indicate policymakers are well attuned to the need to move from simple growth to higher-quality development. Fourth, deleveraging of local debt has been initiated, which will support sustained growth over time.

At the 19th National Congress of the Communist Party of China, General Secretary Xi Jinping emphasized that development is the foundation and key to addressing all problems. China's medium-term policies must cope with these challenges in the "new normal" of the international environment, even as the country's uneven and inadequate development is at odds with people's ever-growing needs for a better life".