The middle class in China - potential and problems

Middle class is important for economic development and growth of a country. Nowadays middle class in asian countries like China, Vietnam or India is significantly growing. Middle class in China has started to develop after economic reforms, which were launched in 1980s. People belonging to middle class in China are concentrated in urban area. Originally it started to develop in the coastal part of the country. There is a trend to move also to the inner part of the country. The biggest potential of the middle class is boosting domestic consumption. On the other hand there are certain problems, which might lead to middle income trap. The main problems are low productivity, high disparity, pressures on environment or aging population. The government is making a lot of measures to solve this problém. Nevertheless these problems are long term and they must focus on them in the future too