Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 32 , 10 November 2023


Open Access | Article

China’s Population Aging: Economic Problems, Solutions and Prospect

Pinhan Yi * 1
1 University of Miami

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 32, 71-77
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Pinhan Yi. China’s Population Aging: Economic Problems, Solutions and Prospect. AEMPS (2023) Vol. 32: 71-77. DOI: 10.54254/2754-1169/32/20231570.

Abstract

China's aging population, primarily driven by the family planning policy, increasing life expectancy, and declining fertility rates, poses significant economic challenges for the nation. This paper investigates the implications of this demographic shift on the labor force and productivity, retirement, pension and healthcare systems, and savings and investment behaviors, and provides policy recommendations to address these challenges. The research demonstrates that a shrinking labor force may lead to reduced productivity and wages, impacting the overall economy and China's competitiveness in the global market. However, technological advancements and automation may help mitigate these challenges. In terms of retirement, pension, and healthcare systems, the aging population places considerable pressure on their sustainability. Policy changes, such as delaying retirement age, reforming the pension system, and investing in healthcare infrastructure, may help alleviate these pressures. Regarding savings and investment behaviors, the paper highlights the differences between older and younger individuals, with potential implications for the financial market's stability and growth. The significance of this research lies in its comprehensive analysis of the economic challenges posed by China's aging population and its innovative suggestions for policy changes to address these issues. Key policy recommendations include encouraging technology adoption and innovation, implementing pension system reforms, gradually increasing the retirement age, investing in healthcare infrastructure and professional training, and developing financial products and services tailored to the aging population's needs. These proactive policy changes and adaptations can help China successfully navigate the demographic shift, ensuring continued economic growth and stability for its citizens.

Keywords

aging population, economic challenges, labor force, pension system, healthcare infrastructure

References

1. Total Population in China, https://www.ilo.org

2. The Population and Family Planning Law of the People's Republic of China 2002. http://www.gov.cn/banshi/2005-08/21/content_25059.htm

3. Zhuang, G. B. (2017). Research on the Evolution and Impact of China's Family Planning Policy (Doctoral dissertation, Nanjing University of Aeronautics and Astronautics). https://kns.cnki.net/KCMS/detail/detail.aspx?dbname=CDFDLAST2019&filename=1019801119.nh

4. National Bureau of Statistics of China, https://data.stats.gov.cn/easyquery.htm?cn=C01

5. Deng, Y. (2016). Research on the Application of Computer Control Technology in Industrial Automation Production. Science and Technology and Enterprise (03), 73+76.

6. Tang, W. (2017). Analysis of the Management Status of Foxconn Technology Group Co., Ltd. Industry and Technology Forum (05), 285-286.

7. Lin, Y. (1994). Economic Thinking on China's Retirement System. Contemporary Finance and Economics (01).

8. National Bureau of Statistics of China, https://data.stats.gov.cn/easyquery.htm?cn=C01

9. Liu, X. L. (2014). Research on the Gap and Sustainability of China's Pension Insurance Revenue and Expenditure. China Industrial Economy (09), 25-37.

10. Du, P., & An, R. X. (2021). The Impact and Implications of COVID-19 on Elderly Health Services. Journal of Hebei University (Philosophy and Social Sciences Edition) (01), 92-98.

11. G20 Fukuoka Policy Priorities. (2019). Aging and Financial Inclusion - 8 Key Steps to Design a Better Future. https://www.oecd.org/g20/summits/osaka/G20-Fukuoka-Policy-Priorities-on-Aging.pdf

12. Bergantino, S. (1998). Life cycle investment behavior, demographics and asset prices.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-085-1
ISBN (Online)
978-1-83558-086-8
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/32/20231570
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated