The topic of whether China will suffer from "middle class trap" has been argued for a long time and local scholars strongly believe that the root cause of the problem is directly related to wealth gap. However, ANBOUND's chief researcher Chan Kung has different view based on his observation on South American countries that are suffering from “middle class trap”. He highlighted that the major factor leads to stagnant growth in those countries is not wealth gap but income issue whereby the citizens failed to secure a job with stable income and their income hardly able to catch up with the rising of goods price. These are the main root causes of the “Latin American disease”. The different views on “middle class trap” are calling for different policy responds and China’s decision makers should pay attention to it.