AI Sentiment: Bearish
Reason: China's demographic crisis, marked by a slowing birth rate and rapidly ageing population, could have serious implications for the country's economic growth, social stability, and international influence.
China is currently facing a demographic challenge that may have significant implications for its future growth and development. The country's population growth has slowed significantly, and it is now on the brink of a demographic collapse. This situation is largely due to the country's past one-child policy, which was implemented in 1979 to control population growth. Although the policy was relaxed in 2015, allowing couples to have two children, the impact of the one-child policy is still evident.
The country's birth rate is now at its lowest since the founding of the People's Republic of China, with only 10.48 births per thousand people. This situation is exacerbated by an increasing number of elderly people, leading to a rapidly ageing population. The proportion of people aged 60 and above has reached a record 18.7%, with those aged 65 and above accounting for 13.5% of the total population.
This demographic shift is causing significant challenges for China. The shrinking working-age population means there are fewer people to support the growing number of elderly people. This is likely to put a strain on the country's social security and healthcare systems in the coming years.
The government has introduced measures to try to address the issue, including raising the retirement age and encouraging families to have more children. However, these measures have been met with resistance, particularly the proposal to raise the retirement age. Many Chinese people are also reluctant to have more children due to the high cost of living and education.
The demographic collapse of China poses a significant challenge for the country. If this trend continues, it could have serious implications for the country's economic growth, social stability, and international influence. It will be important to watch how China manages this challenge in the coming years.