[ad_1]
Beijing [China]Feb. 28 (ANI): Changing demographic dynamics will affect the Asian giant’s economy for years to come, the Eurasia Foundation reports.
The biggest problem facing China in the future is the declining labor force, which may drop from a peak of 925 million in 2011 to 700 million by 2050.
Labor surplus in both rural and urban areas of the country is already evident. The decline in the supply of rural labor has been pushing up wages in the country, which could ultimately make Chinese products less competitive.
In addition, labor shortages, rising wages, and the Chinese government’s policy of forcing technology transfers may accelerate the trend of foreign companies exiting China. Some of them have moved to Southeast Asian countries, some of whom see India as a top destination for doing business, the Eurasia Foundation reported.
China’s National Bureau of Statistics announced on January 17, 2023 that China’s population will decrease by 850,000 people in 2022. It was the first decline since 1961, when the country’s “Great Leap Forward” policy amid a failed four-year famine.
China already faces declining labor supply, which tends to distort the labor market by creating labor shortages and pushing up wage rates.
China has 875 million people aged 16-59, accounting for 62% of the total population. About 75 million fewer than in 2010.
This demographic regression in the working-age population is a concern in China, while the proportion of older people in the 60-plus age group, known in demography as the “dependency ratio,” has been increasing, according to the Eurasia Foundation.
The Chinese government also estimates that by 2050, 35 percent of the population will be over 60 years old.
It is estimated that by 2050, spending on aging healthcare will rise from 7 percent of China’s GDP in 2015 to 26 percent. This will put enormous pressure on government budgets and put pressure on capital formation and investment.
One of China’s troubling demographic trends is the sex ratio imbalance. In 2022, China’s sex ratio will be about 105 men to 100 women. The ideal sex ratio is one to one. Still, sex ratios vary across age groups due to factors such as elective abortion and different life expectancies for men and women, according to the Eurasian Foundation.
A widening gender imbalance in rural China is prompting men to pay haphazard “bridal gifts”, a practice that has become so common that the Chinese government last week pledged to intervene. The 2023 Chinese policy document released on February 13 has already reflected the imbalance between China’s male and female population. Document No. 1 promised a campaign to curb “exorbitant betrothal gifts”.
Moreover, China’s demographic regression, as interpreted by Barclay Bram of the Asia Society Policy Institute, shows a marked shift in the behavior of China’s young population of childbearing age. “Chinese young people marry later, have fewer children, or even have no children at all.” From 2013 to 2020, the number of married couples in China decreased from 13.46 million to 8.46 million.
India may have surpassed China as the world’s most populous country as it grapples with the impact of its changing demographics and considers strategies to stem its population decline, according to the Eurasia Foundation.
Changing demographics naturally have political and geopolitical consequences, and the West should carefully consider its relationship with both Asian powers as they vie for economic and political power. With many European countries already wary of China’s influence and economic clout, will demographic shifts further drive people towards India and other Asian countries? (Arnie)
(This is an unedited and auto-generated story from a Syndicated News feed, the body of content may not have been modified or edited by LatestLY staff)
share now
[ad_2]
Source link