The Chinese government needs to do more to prevent the country from falling into a "middle-class trap," characterised by concerned about personal or family prospects, resulting in loss of faith in the country's development and potential social instability, according to Li Daokui, director of the Center for China in the World Economy at Tsinghua University. "The government's efforts are not enough yet," he said.
The Chinese government needs to do more to prevent the country from falling into a "middle-class trap," characterised by concerned about personal or family prospects, resulting in loss of faith in the country's development and potential social instability, according to Li Daokui, director of the Center for China in the World Economy at Tsinghua University. China should follow the German model of indirect taxation via businesses, a good supply of affordable homes for rent, a non-competitive education system and a "transparent and fair social governance" to ease the pressures on the middle classes, he said.