Cai Fang, a member of the Monetary Policy Committee of the People’s Bank of China, the central bank of China, said that China’s population will reach its peak in the coming four years.
The world’s most populous country, China, is going to have a demographic change in the next few years. Negative growth will begin in China after 2025. A Chinese economist has warned that consumer demand will start to decline due to negative growth in population. At the same time, China has been warned in a research that it will have to liberalize the rules for childbirth, otherwise it will cost more on the health of the elderly. Also, there will be a shortage of people working in the country.
Cai Fang, a member of the Monetary Policy Committee of the People’s Bank of China, the central bank of China, said that China’s population will reach its peak in the coming four years. But after achieving this milestone, consumer demand in China will start to decline. The Hong Kong-based South China Morning Post quoted Kai as saying when the total population enters negative growth (2025), demand will decrease. “We need to pay attention to the impact of demographics on future consumption,” he said. Kai’s statement came at a time when China is going to release its latest census report this month.
China will have to face these problems if there is negative growth rate
According to PBOC research released a few days ago, China should immediately work on liberalizing its birth policies. If it is not done, it will have to face its terrible consequences. There will be a shortage of workers in China’s workforce and by 2050, the burden of elderly care will be more than that of America.
Four PBOC researchers said that China should not interfere with people’s ability to produce children. If he does so, it will be too late for Beijing to change the economic impact of the dwindling population. Let us tell that in 2016 in China, married couples were allowed to have two children.
‘Two-child policy’ is also not benefiting
The disputed ‘One Child Policy’ remained in force in China for more than three decades. Because of this, China has faced a demographic crisis. The population of people above 60 years of age started increasing rapidly in the country. According to official figures, the number of people over 60 years of age in 2019 was 42 crores.
In a hurry, a ‘two-child policy’ was implemented in 2016. But there is no effect of this too. There has been a decline of up to 20 lakhs in the births of children occurring every year since 2018. In comparison to 2018, 5,80,000 fewer children were born in China in 2019.
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