China'S Economy May Face Double Traps

"If we combine this with the aging of the population, the increase in the number of middle class and pension plans, China will face a double threat - the Middle Income Trap (lag in institutional adjustment) and the high income trap caused by the financial unsustainable welfare program."

At the 2012 China Development Forum held on 18~19 March, the Sri Mulyani Indrawati, deputy director of the world bank, said, "in short, China's economy is facing two traps of middle income and high income."

Indrawati's Chinese name is called

Ying Zhuohua's "this" refers to the common problems of many middle-income countries, such as social inequality and the low efficiency of public services in obtaining public services.

To cope with these two pitfalls, the British government believes that on the one hand, it is necessary to increase the financial expenditure on social services, and at the same time enhance the financial services for social services.

In fact, increasing the financial expenditure in the field of social services is the consensus of experts attending the meeting. On the one hand, from the perspective of stimulating domestic demand, only increasing investment in this field, improving the social security network and reducing the worries of ordinary people can increase their consumption level.

Boskin and Austen Gusby, two former chairman of the White House Economic Advisory Committee, said in an interview with the first Financial Daily reporters.

Different from other middle-income countries,

Boskin warned: "in a few decades, if the related borrowing or debt does not look so cheap, the situation will be different."

The implication is that we should prepare for a rainy day when China's fiscal revenue is in good condition.