China should change growth model (2)

Wihtol also warned China about the situation of "middle-income trap", where manufacturers of a country often find themselves unable to compete in export markets with lower-cost producers elsewhere.

As China has had more than 30 years of successful growth, it is reaching the limits of old growth models. So China is beginning to face the question of "income trap", which is also faced by many middle income countries, he said.

As a country's economy grows, then salaries and wages go up, and it would be harder to compete in the global market, he explained.

"What we need to do for this is to invest a lot in education and innovation," he said. China's economy has to look for more knowledge-based production. It has to look for more value addition in its production. In this way, it can keep its economy continue to be competitive, he added.

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