Why is China a middle income country?

China is classified as a middle-income country primarily due to its economic development trajectory and income distribution. While it has experienced rapid growth and significant increases in GDP, income inequality remains a challenge, with a substantial portion of the population still earning lower incomes. Additionally, despite advancements in urban areas, rural regions continue to lag behind in terms of wealth and infrastructure. This combination of factors positions China within the middle-income category according to the World Bank's classifications.