>I heard an interesting point that China will not escape the middle income trap, they will however just rug pull the developed nations straight back into middle income or even lower income.
You know we're hearing a lot about Chinese overcapacity lately from western Elites? They are afraid China will gobble up their value added industry and markets. Hence these sanctions and trying to stop China from developing their value added industries.
So imaging being a non western company, are you really going to buy the more expensive western machinery or are you going to buy cheaper and probably better quality Chinese machinery? This probably means this will cut massively in western companies revenue and profits, making paying off or getting future loans harder etc.
It will not happen tomorrow but i think this process will be done before 2050. I don't even think its an explicit Chinese leadership goal. Its just the result of China being the biggest and most competitive manufacturing market on the planet. So its mostly market forces doing their thing within China's consumer good and private sectors.
How would they do that?