One of the debates about China that I expect will gain more prominence this year will be if China is going to fall into the middle income trap. For those unfamiliar with the term, it was coined by Indermit Gill and Homi Kharas in 2007 in a World Bank paper and describes the observation that GDP growth drops rapidly for some countries, once they have achieved a GDP per capita around $10,000 to $15,000 in today’s money.