China’s Aged Population: Favorable Policies and Economic Opportunities

China’s Aged Population: Favorable Policies and Economic OpportunitiesAccelerating Demographic Shift and Start of an “Aged Society” In January 2022, Chinese elderlies aged 65 and above reached 200 million – accounting for 14.2% of the total population. According to UN standards, a country with more than 7% of the population over the age of 65 is an „ageing society“, more than 14% an „aged society“ and more than 20% an „ultra-aging society“. Thus, this marks China’s official demographic entry into an „aged society“. Meanwhile, China’s elderly service resources are not balanced geographically: especially in rural areas and in the case of …

The Chinese Consumer in 2022

The Chinese Consumer in 2022“Generation Z” Chinese consumers display fundamentally different behavior as new sales channels, rising domestic brands and an increasing desire for self-expression have changed purchasing habits. But the growing elderly population is becoming an important consumer group as well! In this article we summarize the main characteristics about consumption in China you need to know.Rising Purchasing Power in China The annual disposable income of residents in China’s urban areas has been constantly growing over the past decade: From on average around 2,500 EUR in 2010 to more than 5,500 EUR in 2020. Urban dwellers in tier-1 cities …

Will Blue Collar Labor Shortages Lead to More Automation in China?

Blue-Collar Labor Shortage and China’s Automation DriveWhy is there a blue-collar labor shortage in China? As the consequence of the one-child policy as well as rising financial pressure, China’s fertility rate has remained at a low level for years, leading to a rapidly aging population which heavily impacts the available workforce within the country. The population aged 15 to 59 only accounted for 63% of the total population in 2020 – down by around 7% points compared to a decade ago. Since 2017, the labor force has been decreasing and could further shrink by 5% in the next ten years, …

China’s Demographic Challenge

China’s Demographic ChallengeWhy is China facing demographics problems? From 1960 to 2015, China’s population more than doubled to around 1.4 billion people. The government tried to control this explosive growth with the One-Child Policy introduced in 1979, leading to a decline of the average fertility rate per woman from over 6 in the 1960s to 1.7 in 2020. Even the recent policy shift towards a universal two-child policy could not significantly reverse this trend. After reaching its peak in 2016, the number of new-born babies in China is expected to continue declining until 2030. Nowadays, Chinese have fewer children due …