China's Economy: Challenges and Solutions in a Globalized Space.

Abstract

The Chinese economy in the process of market reforms is in the so-called "middle-income trap", taking measures to achieve high-income status. China needs to preserve the trajectory of economic development, taking into account the fact that the country's financial system simply will not be able to provide a sufficient level of lending. Local governments have also been selling special refinancing bonds to swap some of their higher-cost off-balance sheet debt. Manufacturing and service sectors have contracted, reinforcing the belief that additional government measures are needed to support the slowing economic recovery.