China has eradicated absolute poverty and has reached the middle level of development. On its way, it crossed the borders of several clusters and surpassed South Africa and Brazil. Its achievements were based on the development of market institutions, world market opportunities, and the maintenance of an exceptionally high capital formation rate. The rapid pace of changes, demographic policy, and the solution of infrastructure problems have created certain issues—we note social inequality, environmental problems, the growth of household debts, and financial problems in the real estate sector, which are largely the consequences of huge social programmes. The transition to a “new normal” with lower (but still high) growth rates in many ways resembles the known effect of a “middle income trap.” The country has been developing along well-known lines but faster and by its own manner. By the horizon of 2035, China is expected to reach the current level of development of South and East Europe.

This article was submitted 27.02.2024

The authors would like to thank Andrei Evgenyevich Shastitko, Professor at the Faculty of Economics, Moscow State University, for pointing out the insufficient study of institutional aspects of China's development