I would like to point out one thing about GDP numbers and how misleading it can be, especially when percentage growth is involved.
China used to enjoy a 10% GDP growth rate and now it's sitting at around 6%. After a few years, it will decline to 2-3% like most developed countries. It sounds like a bad thing but it really isn't.
In 2009, China's GDP was around 5.5 trillion USD (in 2010 dollars). 2010 saw a GDP growth rate of 10.6%, which added ~580 billion dollars. In 2017, China's GDP was 10.2 trillion USD, while 2018 saw a GDP growth rate of "only" 6.5%. Yet by the end of 2018, China had added ~690 billion dollars to GDP despite the far lower growth rate. In today's USD, that works out to 1.5 trillion dollars worth of nominal GDP growth.
The growth rate in percentage is declining, but in nominal terms, the growth of the Chinese economy is still accelerating. Or at least, was accelerating until COVID happened. But as we all know, China has the situation under control after locking down for three gruelling months, and is ready to continue servicing the global economy while most other countries are struggling to get back on their feet.
The Chinese economy is in a good position to overcome the middle income trap. The situation is far from ideal, but the obstacles are not unsurmountable either.
China used to enjoy a 10% GDP growth rate and now it's sitting at around 6%. After a few years, it will decline to 2-3% like most developed countries. It sounds like a bad thing but it really isn't.
In 2009, China's GDP was around 5.5 trillion USD (in 2010 dollars). 2010 saw a GDP growth rate of 10.6%, which added ~580 billion dollars. In 2017, China's GDP was 10.2 trillion USD, while 2018 saw a GDP growth rate of "only" 6.5%. Yet by the end of 2018, China had added ~690 billion dollars to GDP despite the far lower growth rate. In today's USD, that works out to 1.5 trillion dollars worth of nominal GDP growth.
The growth rate in percentage is declining, but in nominal terms, the growth of the Chinese economy is still accelerating. Or at least, was accelerating until COVID happened. But as we all know, China has the situation under control after locking down for three gruelling months, and is ready to continue servicing the global economy while most other countries are struggling to get back on their feet.
The Chinese economy is in a good position to overcome the middle income trap. The situation is far from ideal, but the obstacles are not unsurmountable either.