New Risks and Threats in China’s Economy: Consequences of Sanction Pressure or Falling into the “Middle-Income Trap”?

The decline in the country’s GDP growth rates is determined by the structural imbalances of the transitional economy of China, the consequences of the geo-economic war unleashed by the United States, and the inevitable crisis of growth, accompanied by the risk of falling into the “middle-income trap”.At the initial stage, the sanctions pressure on China caused considerable concern, however, since May 2023, Beijing began to introduce effective countersanctions that can reverse the situation with the sanctions pressure and lead to its weakening.Another factor of concern about the situation in the country’s economy is related to the difficulties in further search for internal growth drivers. Since 2019, China has come close to high-income countries, but the PRC has not yet managed to overcome the milestone and stand on a par with “rich” states.The main conclusion of the study is that risks and threats are growing in the Chinese economy due to sanctions pressure and approaching the “middle-income trap”.

China, USA, recession, global economy, middle-income trap, sanctions pressure