UC Santa Barbara

Will China be able to rebalance its economy, heavily tilted towards investment? Will it be able to increase the share of household consumption in GDP? Will it turn steeply growing social inequality around? Will urbanisation contribute to China’s rebalancing or will it add to the imbalances? Will China manage to bring pollution under control? Such variables will determine whether China can move beyond the middle-income trap and also affect its external relations. In addition, China’s rebalancing is a variable in global rebalancing. This article provides an introduction to the special issue.