How Can China Escape the Middle-Income Trap?

As one of the most widely discussed terms in recent decades, the middle-income trap refers to a dilemma in which middle-income economies struggle to achieve high-income status. After becoming an upper middle-income country in 2010, China has been stuck in the middle, facing the problem of economic stagnation. This research focuses on the steps taken by the countries that have successfully escaped the middle-income trap and figures out how those actions can shed light on the policy-making in China. The conclusion drawn from the work is that the Chinese government should present a co-creation and pro-industry attitude towards private sectors for industrial upgrading and developing vocational education, enhancing the connection between schools and enterprises in providing courses and pipelining talents. This work points out the policies China can work on to escape the middle-income trap by adjusting the relationship between the government and enterprises and transforming its rich population resources into a reliable reserve of highly qualified labor forces.