China should lift all birth restrictions so that the Chinese are encouraged to have more children. The country’s population is ageing faster than in developed countries, say researchers from China’s central bank (PBOC).
In addition, the Chinese have to save more to assist the elderly.
Ageing is not a new problem in China as the number of babies has been declining for years. In 2013, the government relaxed the one-child policy introduced in the late 1970s, and from 2016 families were allowed to have two children. That has not helped reverse the decline in the birth rate.
The birth rate in 2019 was the lowest since the foundation of the People’s Republic of China in 1949.
The PBOC expects China’s labour force to shrink by half a percent annually until 2025. By 2050, the country’s workforce is estimated to have shrunk by more than 15 percent.
According to the PBOC, China should invest more in developing areas in the middle and west of the country. The country should also invest more money in developing countries to benefit from their workforce. Furthermore, the Chinese pension system should be reformed.
