China population: economic model must shift from ‘Made in China’ to ‘Designed in China’, say experts
- Official data confirming China’s population is in decline has set off renewed debate about the economic implications
- China must respond by shifting its development model to focus on technology upgrading and fostering talent, experts say
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China reports first population decline in 6 decades, with birth rate at record low in 2022
China’s declining population will not necessarily lead to an economic slump, though more must be done to respond to the country’s falling birth rates and take advantage of the changing demographic structure, experts say.
Though the figures were not unexpected, official acknowledgement immediately renewed debate about the economic implications and how policymakers should best respond.
“The long-term low fertility rate will inevitably lead to population decline, the trend cannot be reversed, and judging from the practices of countries and regions with low fertility rates, various pronatalist policies are not very effective,” said Chen Wei, a professor with the Population Development Studies Centre at Renmin University.
However, European countries that have undergone natural population declines for decades have not seen their economies shrink, he added.