Chapter 2 Challenges

Recently, the uncertainty about China's development has risen with the international situation becoming unpredictable, with countries increasingly resorting to protectionism and unilateralism. Experts point out in this chapter the problems China faces and how to solve them in the next step of China's development. Peter Williamson, professor at Judge Business School of Cambridge University, says that in order to avoid the “middle-income trap”, China will need to find ways of continuing to increase the productivity of its people, its capital and its resources at a rapid rate. Luigi Gambardella, president of ChinaEU suggests that China should leverage more resources to increase basic research, which is key to develop China's own technological edge.