Qian Yingyi: Falling economic growth is the real challenge facing China

Sponsored by the financial and new media, the "2010 Finance and New Summit: China and the World" was held in Beijing November 5, 2010 6th. The theme: The Chinese policy of changing the world. The above picture is Tsinghua University Economics and Management school Dean Qian Yingyi.　　(Photo from: Sina financial Liang) November 5 Afternoon news, Tsinghua University, dean of economic management Qian Yingyi in the "Change the world's China Policy" forum, said that the decline in economic growth is the real challenge for China in the future. Qian Yingyi said that after 30 years of reform and opening up, China has achieved two important leaps, one is successfully lifted out of poverty, and the other is to make China's per capita income reach about 8000 U.S. dollars.　　The next 20 years are a critical moment for China's income per capita to reach middle-income countries, and the following issues deserve attention. One issue of concern is the likelihood of China falling into the middle income trap and how to avoid it. The so-called "middle income trap" refers to a country's economic stagnation or slow, economic development is not enough to continue to advance to the developed countries when the per capita income reaches $10000. In Latin America, for example, the economy grew well in the last 50-70 years, but growth stagnated in the 80-90-year era. Serious polarization and social political unrest are important factors.　　But China's surrounding areas, such as Japan and South Korea, are not caught up in this trap. Qian Yingyi that, even if it is not mired in the middle income trap, the economy will decline as the economy grows to a moderate income, which is the rule.　　In Japan, for example, in 1971, Taiwan's economy grew at a rate of 7% per cent in 1988, while its economic growth had stayed for a long time in 8%. "From countries such as Japan and South Korea found that per capita income of 8000 U.S. dollars, the economy will slow down, economic slowdown is a sign of maturity, but China must do a good job of coping with, change the way of development, it is not easy, is the real challenge." Qian Yingyi also said that a country can not only look at per capita income, but also to see the total economy. China's economy has surpassed Japan this year to become the world's second-largest economy. According to market exchange rate, GDP is the United States One-third, according to purchasing power parity, China's GDP is two-thirds of the United States. China is likely to overtake the US in about 20 years to become the world's largest economy, if at purchasing power parity it could overtake the US in 7-8 years. China's income per capita will certainly reach the world average in the next 20 years, and China's position will obviously be important. "China is a big country, the peace mentality of big countries is very important, China should adapt to the world, the world must adapt to China." "(Snow ting from Beijing)