"Over the past four decades, China has evolved from being largely isolated and irrelevant to the world economy to having the world's second-largest economy, and it is widely expected to have the largest economy in the near future. In the process, China went from having a largely agricultural...

The current Chinese development model is nearing its limits. The World Bank has cautioned that China could find itself in a “middle-income trap”. China recognizes that it must dramatically increase its capacity for innovation to avoid this trap. This chapter provides an introduction to the...