Will China fall into the middle/high income trap?

<div>This episode is part of the ZhōngHuá Mundus series of The Sound of Economics.<br> <br> </div> <div>ZhōngHuá Mundus is a new newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. <a href="https://bruegel.secure.force.com/events/UpdateAcc?sf=1&amp;s4=1">Sign up now</a> to receive it in your mailbox!</div> <div><br> </div> <div>The middle-income trap describes a situation in which a country, having attained a certain income level, gets stuck there (due to given advantages). The high-income trap is of a similar nature, because although the positioning of these economies might be more advantageous to begin with, they find it difficult to promote innovation in manufacturing or upgrade to higher value-added services to remain competitive and provide benefits to a wider spectrum of society.<br> <br> </div> <div>In this episode of The Sound of Economics, <a href="https://www.bruegel.org/author/giuseppe-porcaro/">Giuseppe Porcaro</a> and <a href="https://www.bruegel.org/author/alicia-garcia-herrero/">Alicia García-Herrero</a> are joined by <a href="https://www.bruegel.org/author/syaru-shirley-lin/">Syaru Shirley Lin</a>, Compton Visiting Professor in World Politics at the Miller Center of Public Affairs at the University of Virginia. They discuss the middle/high-income trap in East Asia, and especially in China. Is the high-income trap different between East Asia and Western Europe, especially in terms of their economic relationship with China? How has COVID-19 changed the economic landscape?<br> <br> </div>