Analysis and Enlightenment of the Reasons for Why China Can Get Rid of the Poverty Trap

Abstract

In 2020, China successfully won the Tough Battle Against Poverty, and eliminated all absolute poverty in the society. China becomes the first developing country that completes the poverty reduction goal of the United Nations Millennium Development Goals, and makes great contributions to the world poverty reduction. Most importantly, China escaped the Poverty Trap. According to the comparison between China and other countries that fall into the Poverty Trap, it is found that the environment for technological development, the potential economic growth, and the role of becoming the fourth "world factory" and the fourth international industrial transfer are all one of the factors that China can get out of the Poverty Trap. These factors ensure that Chinese economy can grow rapidly and also explain why China can avoid the Poverty Trap. Therefore, China should continue to vigorously develop its economy and technology to prevent poor households from returning to poverty and eliminate relatively poor populations.