The miracle growth of the Chinese economy has decreased from a compound annual growth rate of 10% to less than 7% as of 2015, raising questions about China’s prospects for avoiding the middle-income trap.
The two engines of growth — exporting on a scale never before witnessed and massive infrastructure investments — are reaching the point of diminishing returns. This poses the central question explored in this book: Can China escape the middle-income trap? Assuming that current political arrangements remain unchanged and that it does not or cannot adopt Western sociopolitical economic regimes, can China still develop a new growth model centered on innovation?
This compilation brings together leading Chinese and international scholars to consider the daunting challenges and complexities of building an innovation-driven Chinese growth model. To give the reader a comprehensive perspective, it examines the role of culture, institutions, national policy, firm and individual dimensions in structuring the operation of small and medium-size enterprises, intellectual property, the financial system, sociocultural forces, creativity, industrial sector dynamics, and technology. The analyses range from strongly optimistic to deeply pessimistic about China’s future.