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China, US middle classes a crucial link in relationship chain, analyst argues

  • Middle classes of US, China cited as point of kinship by political scientist, with symbiotic economic relationship driven by trade and demand

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Political scientist Li Cheng said the middle classes of the US and China are essential for understanding their respective economies, and a potential source of stability in relations. Photo: World Economic Forum
Kinling Loin Beijing

China’s middle class is a group to which the country’s policymakers should be paying close attention, a prominent political scientist has said – both in terms of the demographic’s traditional role as a predictor of economic prosperity, and as a potential factor in helping preserve frayed relations with the United States.

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“We should promote the view that a stronger Chinese middle class is beneficial for the US middle class,” said Li Cheng, a politics professor at the University of Hong Kong, at a Saturday event in Beijing promoting the launch of his book.

“China’s middle class has not only transformed the country’s economy, but the world’s,” said Li, arguing global markets’ demand for goods – the US foremost among them – helped drive China’s economic growth and aided the country as it journeyed out of poverty.

Li cited the US’ recent issues with inflation as one area in which a healthy trade relationship with China could be helpful, appealing to a once-common view that strong ties are mutually beneficial. “Why can’t the US see China’s growing middle-class population as an opportunity to solve its [own] problems, instead of a challenge?”

Increasing restrictions on trade and tech from the US and its allies, slowing growth and low figures for domestic consumption have led economists to believe China is at risk of becoming ensnared in the middle-income trap – a phenomenon where a developing country’s growth stagnates and it is unable to enter the ranks of the advanced economies.
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Boosting the country’s headcount for middle-income earners is a major target for the Communist Party in its vision for 2035 – the year in which leaders have pledged China will become “moderately developed” – and viewed as a prerequisite to avoid getting caught in the web.
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