China, with a per capita income of about US$3,800, is now entering what is called the middle-income transition. This phase of development is sometimes called a trap. It is one of the more complex and risky transitions that occur in developing countries on the long, multi-decade journey from low-income to advanced country levels.
China does has Asian on its side. Only 5 economies since hte end of the second world war have maintained high growth rates through this transition and achieved advanced income level of US$20,000 plus. They are Japan, Hong Kong, Singapore, South Korea and Taiwan.