China to become high-income country by next year, the second country after S.Korea moved from low to high-income since the second world war

[xizhimen]

China to become high-income country by next year, the second country after S.Korea moved from low to high-income since the second world war​

28TH JAN 2022

China is likely to become a high-income country by next year, economists said yesterday.

In 2021 per capita income reached $12,551 (£9,380), not far shy of the World Bank definition of a high-income country ($12,695).

China’s zero-Covid policy, using strict localised lockdowns and mass testing with isolation and support to prevent the spread of coronavirus, has enabled it to avoid national lockdowns or major waves of sickness, meaning it was among the few economies to record continuing growth in 2020, which sped up in 2021.

While many low-income countries (defined as having per capita income of under $1,046 in 2021) have become middle-income countries, China would only be the second to move from low to high-income since the second world war, after South Korea.

The World Bank has described a “middle income trap” in which developing countries’ labour becomes more expensive, deterring investment, though critics ascribe underdevelopment to the domination of many economies by Western transnationals which channel profits away from them.

China to become high-income country by next year

morningstaronline.co.uk

 

[xizhimen]

China successfully leapfrogged the so called "middle income trap" in an instant, nothing can trap China.

 

[Suehtam]

China successfully leapfrogged the so called "middle income trap" in an instant, nothing can trap China.

I have a consideration to make. This news is clearly a positive thing for the development of the Chinese economy, but we need to pay attention to the fact that there is still a long way to go before China can achieve the status of a high-income country. For example, a high-income country is described as having a GDP per capita of US$30,000, a country like China with more than 1 billion people still in development that has its growth slowing down is not a very motivating situation. I occasionally remember that in 2016, economists had the proper reluctance of China to escape the middle-income trap, citing a handful of countries that managed to escape this trap, as the news demonstrates, China this year will manage to get out of this trap, the which is good news.

Although the State still fully controls sectors considered strategic, such as banking, for many economists, the key to the Chinese miracle lies in the private sector, whose contribution is usually described in the 60/70/80/90 formula: it contributes 60% of the GDP, 70% of innovation, 80% of urban labor and 90% of new jobs. Xi Jinping wants to double the middle class by 2035, his focus is clearly on boosting the middle class by developing the domestic market, which would help to meet expectations of stabilized economic growth in the following years by reducing its dependence on exports, a measure such as this is clearly pro -growth.

Currently, the Chinese middle class — those who earn between 15,000 and 390,000 dollars a year — total 400 million inhabitants. A 60% growth in this number would create a consumer market larger than the United States and the European Union combined, expanding the Chinese population's access to basic sanitation and air travel, for example, leveraging the country's importance on the global stage.

 

[xizhimen]

Although the State still fully controls sectors considered strategic, such as banking, for many economists, the key to the Chinese miracle lies in the private sector, whose contribution is usually described in the 60/70/80/90 formula: it contributes 60% of the GDP, 70% of innovation, 80% of urban labor and 90% of new jobs.

I m pretty sure that way more people work in government or state owned companies than the number you listed, will check. Now working in the government offices or departments is the top choice for top university graduates.

 

[Viva_vietnamm]

China successfully leapfrogged the so called "middle income trap" in an instant, nothing can trap China.

Its bcs u try to ignore over 600 million Cnese whose monthly income is barely 1,000 yuan (USD 140) and their lives have further been affected by the coronavirus pandemic, Premier Li Keqiang said

China has over 600 million poor with $140 monthly income: Premier Li Keqiang - CNBC TV18

Business News: Get the latest Business News, Live Share & Stock Market Updates, Top News from India and across world. Read Top Business News and updates on financial, economic and banking news on CNBCTV18.

www.cnbctv18.com

 

[xizhimen]

Its bcs u try to ignore over 600 million Cnese whose monthly income is barely 1,000 yuan (USD 140) and their lives have further been affected by the coronavirus pandemic, Premier Li Keqiang said

China has over 600 million poor with $140 monthly income: Premier Li Keqiang - CNBC TV18

Business News: Get the latest Business News, Live Share & Stock Market Updates, Top News from India and across world. Read Top Business News and updates on financial, economic and banking news on CNBCTV18.

www.cnbctv18.com

You keep sounding like a broken record, first, that report is from years ago, and it repeatedly said it meant "disposable" income, which in US it can be negative.