The National Intelligence Council of the United States (NIC) has recently released the report “Global Trends 2030: Possible World,” forecasting that China’s total economic output (GDP) will surpass the United States by 2030 and become the world’s largest economic entity. The report also said that it will be difficult for Chinese economy to maintain the average annual growth rate between 8 and 10 percent like in the past 30 years, and will face the risks of political instability, rising nationalism and “middle-income trap.”
It is the first U.S. official forecast saying that China may catch up to it in the future, which caused great attention of the international media.
The release of the report and its contents might encourage the wrong views including “China responsibility theory,” “China collapse theory” and “China threat theory.” Therefore, it is necessary to make a clarification and let the world know a true China.
China will still be the best place for the world to invest.
The “2012 World Investment Report” of the United Nations Conference on Trade and Development (OECD) named China as the most popular host country in the eyes of multinational companies. China has confidence and conditions to remain the most attractive to international investors. It will attach great importance to and properly deal with the “middle-income trap.” However, the view that China will fall into the “middle-income trap” is unfounded and irresponsible. The reasons are as follows: