The current economic situation is very pressing, leaving the central government with no choice but to face the problems of "middle income trap" directly and it is increasingly obvious that the central government is sensing the urgency.

ANBOUND's research team is of the view that there is only two possible future directions for China’s development, China can either complete the building of a moderately prosperous society in all respects or fall into the middle income trap.

The lesson learnt from the Latin American and South East Asian countries who have yet to recover from the “middle income trap” is that in order to unleash its potential and to sustain continuous economic growth, and ultimately to overcome the “middle income trap”, China has to step up the reform efforts and deepen the systematic reform.