We follow Woo (2011) in using the Catch-Up Index (CUI) to define the middle-income trap and identify the countries caught in it. The CUI shows that China became a middle-income country in 2007--2008. We see five major types of middle-income trap to which China is vulnerable: (a) fiscal stress...

We assess the prospects of China's future growth performance in two steps. The first step is to project the potential growth path by determining whether past successes were generated by economic experimentation that produced non-capitalist institutional innovations (e.g. incentive contracts to...

China has a built-in inflationary tendency because of the partially-reformed nature of its economic system. Specifically, the post-1978 marketization of the economy has interacted with the continued state ownership to create an inflationary 'liquidity tango' between the state-owned enterprises...

The 30 years of reform and opening have brought great material progress to China. By becoming a big country, China's actions created huge spillovers on other countries. The result has been a rise in trade tension between China and its trade partners. Recently, some have claimed that China's...