Escaping the middle income trap
After a turbulent 2015, China’s major stock exchanges took another hit in January. Chinese authorities have in the past clumsily tried to stop the free fall in markets with various degrees of success. In the past, intervening in markets has worked. But for China to avoid a middle-income trap and become a high-income country, it will need to develop and trust the markets instead of distorting them with unsustainable growth, just like its Northeast Asian neighbours did.