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Voices

Let reform benefit all, bypass 'middle income trap'

(Xinhua)
Updated: 2014-03-10 21:38

DIALOGUE 2

Xinhua: What are the potential methods China could employ to avoid the trap? How can China learn from the experience of other countries?

Cho Young Nam, a professor on China studies from Seoul National University in South Korea, said China should address the income distribution problem, otherwise it would aggravate social contradictions.

It requires the government to rule the country by law, implement judicial reform, and expand citizen participation, the professor said.

Cho said Singapore, as a city-state, could implement central policies as quickly as possible, and thus it could stride over the "middle income trap" quickly.

However, reform in China needs more public support from citizens due to the complicated relations between central and local governments, Cho added.

Han Jae Jin, a researcher on economic studies in Seoul, South Korea, said his country had restructured its economy thoroughly in order to stride over the trap.

The government of South Korea had shut down less competitive state-owned enterprises, supported more competitive emerging and private companies, and increased education budgets, Han said.

The researcher suggested China should reduce the burden of middle and small businesses, cut away unhealthy parts of large enterprises and cultivate its own talents and brands.

Matias Carugati, chief economist of Management & Fit Consulting Company in Argentina, said it is right that the Chinese government focuses on building a more reasonable revenue distribution system in its comprehensive reform.

DIALOGUE 3

Xinhua: What do you and the public think of China's striding over the "middle income trap"?

German Conrado Avellaneda, president of the Food Arts Company in Argentina, exported marine food to China and imported electronic products.

He said he did not feel worried about Beijing's "middle income trap" as China has more and more middle income people with growing demand for Argentine seafood.

China's upgrade of electronic industry and adjustment of economic structure would further reduce the production costs of high-tech electronic products, Avellaneda said, adding that his company's cost of imports has dropped significantly in the past 15 years.

Douglas Guardia, a vendor in Rio de Janeiro, Brazil, said he knew little about the "middle income trap," but believed advancing the living standards of its people is a commitment that every government should fulfil.

He said China has developed rapidly and hoped the Chinese people could enjoy a happy life.

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