Does anyone know how China is going to solve the population decline that awaits them in the next 30 years? And what would be the impact on world markets if their population drops by 40% by 2050?
Does anyone know how China is going to solve the population decline that awaits them in the next 30 years? And what would be the impact on world markets if their population drops by 40% by 2050?
So the steps they can and even must take are many. As far as I know, this is the main one:
1. Repeal the one-child policy in 2016. Now Chinese couples can have two children.
2. Raising the retirement age. The retirement age is gradually increasing from 60 to 65 for men and from 55 to 60 for women.
3. Investing in health care and infant mortality.
4. China is likely to push for increased labor productivity, automation and robotization. This should compensate for the decline in the workforce.
5. China is likely to open its market more to immigrants to compensate for population decline. But this will be a big challenge for Chinese culture.
My investments are not going to China for many reasons. I think they can handle it and in the long run they can benefit from it.
I'll join with David, while I believe some companies could be good, the environment in China just doesn't fit me. I also prefer to choose Indian ETFs.
There is a fertility decline in many countries. I suppose they are already solving it by "investments" in places where they have a population explosion like Africa.
I don't know how they solve it, but that's also why I don't invest in China. The population decline problem is huge.