China tackling risk of 'middle-income trap' head-on

[SINGAPORE] While the big question facing China is whether it can escape the "middle-income trap", it is tackling this risk head-on by restructuring and re-balancing its economy. And as China deviates from its old growth model, new investment opportunities are forming.

Emeritus Senior Minister Goh Chok Tong said yesterday that "China will continue to be an important engine of growth for the region" and there are opportunities where Asean and China can work together in trade and investments.

"China can leverage on the China-Asean Investment Cooperation Fund to invest in the manufacturing, energy and other sectors in Asean," he said. "Certainly, both sides can enhance their financial connectivity through increased use of the RMB for trade settlement and investment."