Furthermore, the middle class are faced with the anxiety of rocketing house prices in large cities. The German 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 Luo Xuan , director of the World Economy in the Center for China at Tsinghua University . Guangzhou 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.
The German 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 Luo Xuan , director of the World Economy in the Center for China at Tsinghua University . Guangzhou 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.