Brazil which is currently in recession will face a greater national risk this year, exacerbating its "middle income trap" dilemma.

ANBOUND's scholars are of the view that China should learn the following lessons from Brazil: -

(i)China should maintain the role played by the industries in supporting the economy and promote the structural upgrade in the industries while continuing with market opening-up;

(ii)The development of service sector should avoid low-end industries which have little added value.

(iii)The corresponding policy should not be at the cost of weakening the development niche of the enterprises and marketization and it should contain the financial risks and strike a balance between the expansion of social welfare and economic development while not causing excessive consumption to the nation’s fiscal reserve.