Abstract: “The middle income trap” refers to an economic stagnation which might arise after middle income countries enter a certain stage of economic development.It caused a worldwide attention in international economic circle accompanied with an increasing number of researches and papers conducted or published since its inception in 2007.However,the analyses on the causes of the middle income trap were generalized in China. From a global perspective,it actually varies in different situations: some developing countries in fact did not fall into this trap,while some developing countries stride across this trap,but some developing countries unfortunately fell into this trap.The middle income trap is not only caused by the loss of the competitiveness in labor intensive industries in developing countries.It can be more likely caused by the undue upgrading of its industrial structure in developing countries.Although the industrial structure depends on the level of its economic development,the upgrading of industrial structure imposes important impacts on economic development.China is currently confronted with challenges from the middle income trap.It is highly suggested that China should promote advancement of science and technology so as to upgrade industrial structure timely to avoid the middle income trap.

Key words: middle income countries, middle income trap, industrial structure, labor-intensive industry, technology-intensive industry