October 6, 2022
2 mins read

China is stuck in ‘middle-income trap’

China, a population of 1.4 billion, has one of the quickest economic success stories in history however its decline has now increased its financial instability….reports Asian Lite News

China’s rights abuses and bad reputation of its tech companies have resulted in creating a negative business environment that is holding back China in the middle-income trap.

Chinese President Xi Jinping’s regime is faced with an imminent challenge looming large in China, the ‘middle-income trap’ in which the country’s economy becomes stuck and never shifts into a higher gear, the Europe Asia Foundation reported.

China, a population of 1.4 billion, has one of the quickest economic success stories in history however its decline has now increased its financial instability. These factors range from China’s authoritarian regime, unilateralism, military expansionism, violation of human rights and lack of credibility of its tech companies.

Another cause of concern for these companies and businesses who now face the ‘middle-income trap’ is Xi Jinping who has become the ultimate and overarching authority on business operations and politics in China.

All of this has made businesses and companies wary of dealing with China. China’s historic development process. According to a 2012 report, the World Bank and China’s state researchers noted that institutional reforms are needed if the country’s economy is to stride on a path of development.

The primary policy suggestion, therefore, was to “rethink the role of the state and the private sector to encourage increased competition in the economy,” as per the media portal.

China’s population is ageing and the skilled workers are shrinking in numbers. This grim picture has created a demand-supply mismatch in the labour market. Regards to the foreign companies lack of patent protection and fragile China-centric supply chains have created hesitancy them.

To make matters worse for China is the US-China trade dispute. As many as 50 companies have moved production out of China, the media portal reported citing the Nikkei Asian Review.

Manufacturers like Apple have therefore started shifting their production, though on a trial scale, to countries like Vietnam. The golden days of the dragon as the go-to hub manufacturing for the West seem to be over for good reported the portal. (ANI)

ALSO READ: US, China semiconductor battle intensifies

Previous Story

Delhi to enforce new measures as air quality turns ‘poor’

Next Story

Tibetans, Uyghurs abroad burn PRC flags at protests

Latest from -Top News

Activists Targeted Again in Balochistan

The Baloch Yakjehti Committee (BYC) on Tuesday condemned the enforced disappearance of Baloch leader Ghani Baloch, blaming Pakistan’s Law Enforcement Agencies and Frontier Corps….reports Asian Lite News The Baloch Yakjehti Committee (BYC),

Islamabad-Ankara-Baku Axis Sharpens Against India

Both Turkey and Azerbaijan have openly expressed solidarity with Pakistan and backed Islamabad in its military standoff with India, this month….reports Asian Lite News The evolving alliance between Islamabad, Ankara, and Baku

India Targets Pak Terror Ties in Guyana

The delegation met the Guyanese President, Mohamed Irfaan Ali, who had hosted a dinner to celebrate friendship and shared aspirations between the two nations…reports Asian Lite News Congress leader Shashi Tharoor, currently

EU Vows US Trade Deal

European Commission President Ursula von der Leyen phoned Trump on Sunday, after which he agreed to postpone the planned tariff increase until July 9….reports Asian Lite News The European Commission remains “fully

ASEAN Unveils 2045 Vision

ASEAN leaders formally adopted the ACV 2045 and its strategic plans across four pillars: political-security, economic, socio-cultural, and connectivity…reports Asian Lite News The Kuala Lumpur Declaration on ASEAN 2045 — a strategic
Go toTop

Don't Miss

Chinese bank to refinance $500 mn loan for Pakistan

It is relevant to mention that Pakistan had also requested

Uyghur asylum seekers face grim fate in Thailand’s detention centers

The refugee, 40-year-old Mattohti Mattursun, died last Friday after being