In 1978, China started to make reforms in its economy and after some significant efforts the country succeeded to turn into the world’s second largest economy from an economically weaken country. The author, Yasheng Huang, notes that in the following year the country encounters huge challenges, including political and economical. As we are aware of the fact that after a rich performance the economic growth also gets slowed down. The growth process is difficult for a country to retain with a fast pace when the per capita GDP is high than when per capita GDP is low. However, China has centralized control over economic planning and policy, even after the three decades of reforms. The major consequence is the increasing GDP point that ultimately demands more investment and energy, along with the troubling infrastructure of its healthcare and environment. Although, the country’s current growth model, as proved in the past, have caused inevitable losses. It has proved that at the very low income level the growth process becomes easy to expedite, thus at the current income level what is known as “middle-income status”(between $6000 and $8000 dollars per capita) is quite difficult to mark the growth with a rapid pace. Could China stay away from the issue of middle-income and retain the growth for the following decade or more? The authors believe that it might be possible in case if the country continually make such reforms, particularly the political reforms. The author notes that at GDP of $700 it would effective for the country to replicate the other country’s technology. However, China now needs to incorporate effective transformation into an economic system of market based, a highly democratic political system, a rule-based legal system that provides IP protection. At last the author suggested that to move ahead in growth process it is essential for the China to incorporate some significant political and economical reforms.
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