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SingaporeChina StudiesQuick questions
Economic Reform and Transformation
Quick questions on Rebalancing and the drive for innovation explained: H2 China Studies
4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is the middle-income trap?Show answer
The strategic backdrop to both transitions is the "middle-income trap": the risk, observed in many developing economies, of getting stuck at middle-income levels, no longer cheap enough to compete on low-cost manufacturing yet not innovative enough to compete with advanced economies. Escaping the trap requires exactly what China is attempting: raising productivity and innovation to move up the value chain while developing a consumption-driven, services-rich economy. Whether China can escape the trap is one of the central open questions about its economic future, and it is the right frame for evaluating the rebalancing and upgrading effort.
What is q1?Show answer
Distinguish between rebalancing toward consumption and moving up the value chain. [4 marks]
What is q2?Show answer
Explain what is meant by the "middle-income trap" and why it matters for China. [12 marks]
What is q3?Show answer
"China's economic upgrading has succeeded; its rebalancing has not." How far do you agree? [20 marks]
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