That doesn’t mean that there are no problems to worry about in the transition of Chinese economic growth from rates of more than 10 per cent in the course of catching up to middle income countries, to lower rates, currently around 7 per cent, on the way towards higher levels of income. Indeed, there’s a whole literature out there that warns that middle income countries like China and a number of other emerging Asian economies, such as Malaysia and Thailand, face a number of major hurdles in the transition from middle to higher incomes, and others, like India and Indonesia, have still to break through to upper middle income.