How Can CHina avoid THe“Low-To-ModeraTe inCoMe Trap”?

蔡 昉

|Editorial note|China is now considered to be a low-to-moderate income country, according to the latest World Bank country classification by income. At the present stage, China may still risk falling prey to the “low-to-moderate income trap”. What is a “low-tomoderate income trap” and what are its causes? This article presents an in-depth analysis of Chinas income gap and current income distribution status and offers some insights as to how to prevent China from falling into this trap.