Population Decline in China Could Have Global Effects

Dareen Cone
Dareen Cone Business
4 Min Read

Astonishingly, almost one in five people on the planet still live in China – that’s an incredible 1.4 billion individuals! Yet even so, January brought us news of a decline: population numbers decreased by 850,000 compared to the previous year; it is reportedly the first time this has happened since the 1960s.

Last year, China’s population was recorded as 1.4118 billion, and it’s still declining. The numbers are even more concerning when broken down; China’s birth rate only yielded 7.52 new births per thousand people – an all-time low! Unsurprisingly, India is expected to soon overthrow China as the most populous nation in the entire world; this may have already happened without us realizing it!

There Are Policy Changes To Reverse This Situation In China, But Are They Sufficient?

In the early 1980s, China veered away from its isolationist practices and became deeply entrenched in the global economy. It has since seen unprecedented growth fueled by an influx of raw materials and a seemingly endless reservoir of cost-effective labor that has made it one of the world’s leading exporters — decimating many industries across Western nations in its wake.

After the repeal of China’s one-child policy seven years ago, Chinese officials have coined a new phrase: “negative population growth.” It appears that many ordinary citizens are still hesitant to bear children due to their costly upkeep. This phenomenon is highly significant for politicians and academics alike – yet its implications will be far greater than domestic ones as it has an immense global reach.

The Situation Could Get Critical If China’s Cheap Labor Power Ends

As China’s ample supply of inexpensive labor begins to dwindle, it stands to reason that its effect on global prices will also diminish. As the population ages and births become more rare, some China experts are forecasting a rapid decline in population numbers – speculating that by the end of this century, there could be only half as many Chinese citizens as exist today.

there are policy changes to reverse this situation in china, but are they sufficient?

Even though China’s population is nearing its peak, acquiring citizenship in this country has been extremely challenging, if not impossible, for foreigners. As other western countries have looked to migration as one of their solutions when faced with similar situations, it seems highly improbable that China will be able to do the same.

Could China’s Gap Potentially Be Filled by Other Countries?

With China’s population aging before it reaches the economic wealth of developed countries, western luxury goods exporters will soon see a profit decline. Although other nations such as India, Indonesia, Egypt, and Nigeria could potentially fill some voids left by China, none of them have achieved the same success that China has had in positioning itself globally. Therefore, it is improbable that these countries combined would be able to make up for any potential shrinkage in Chinese customers.

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Experienced Journalist with a demonstrated history of working in the financial services industry. Skilled in Management, Banking, Strategic Planning, Business Development, and Teamwork. Strong community and social services professional with a Bachelor's Degree focused in Economics.
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