A Reflection On China’s "Middle Income Trap" Issue From Latin America’s Developmental History

Currently,China’s economy has entered a transition period of New Normal,during which,the rate of economic growth is slowing down,and negative consequences due to the previous High-investment and High-consumption economic development model begin to appear.There has been a hot discussion on the so-called"Middle-income Trap" that China faces.As a typical case,Latin America’s historical experiences and lessons show that the trap does exist.In fact,China is facing the risk,and there are some similarities and comparability between the two economies in terms of stages of economic growth,social features,urbanization,and so forth.The Theory of Economic Growth has some defects when used to analyze"Middle-income Trap",like the neglect of internal structure of economy and the relations between internal factors.Whereas the "Middle-income Trap" risk is systemic,and "urbanization" is the conjunction of a series of factors,the significance of"urbanization" is axiomatic,which has been thoroughly shown from Latin America’s historical experiences.Therefore,urbanization is chosen as a key breakthrough point.On this basis,the paper aims to establish a certain relationship framework between urbanization and "Middle-income Trap",and study the cases of China and Latin America inside it,in order to dig out some helpful findings that China could refer to.In addition,there now in China seems to appear another potential threat-the so-called"Middle-class Income Trap",which could be regarded as a key step,as well as a new pattern and direction during the whole risk-defusing course.The paper is divided into five parts.The first part is an introduction,which describes the research background and significance,and related researches,as well as some innovative points.The second part introduces related concepts,and establishes a relationship framework.The third one provides some enlightenments via the analysis of the case of Latin America’s relevant experiences inside the framework.The forth part focuses China’s current issues.The final part summarizes the analysis in this paper,and put forward some innovative ideas.