Will China Fall into the “Middle Income Trap”?

As the 2008 financial crisis unfurled with its impact on global trade and economy, China also saw a transition. The country’s high (even super high) speed growth, which peaked at 14.2% in 2007, slackened to medium-to-high growth, thus entering the new normal era of economic development. In response, international organizations such as the International Monetary Fund and the World Bank began to adjust downward projections of Chinese economic growth. In some international media, the prevailing sentiment toward China’s economic development was one of pessimism.