China has recorded its lowest birth rate in 2019 since the founding of the People's Republic in 1949, according to the government data released on January 17. It raised concerns that an ageing society and shrinking workforce will cripple down the country's economy. The number of births in 2019 marked the third straight decrease. To get rid of the demographic crisis, the Chinese government has abolished the one-child policy that has been in effect since 1979 and adopted a new policy in 2016 which allows all Chinese couples are allowed to have two children.
Sliding birthrate, tariffs and weak manufacturing investment dragged down China's economy last year. https://t.co/FscYFe9KXi— Nikkei Asian Review (@NAR) January 17, 2020
The plummeting birth rate and ageing have accelerated in China and the effects of the two-child policy almost disappeared in 2019. According to data from the National Bureau of Statistics (NBS) released on Friday, the birth rate stood at 10.48 per 1,000 people in 2019. The fall in the birthrate is likely to accelerate as the number of young women of childbearing age is expected to fall sharply.
Great thread from @CarlMinzner explaining why China's declining birthrate matters for China's economic trajectory, welfare spending, labor force, family policy, & overall economic & political stability: https://t.co/1FUqFBAHot— Sheena Greitens (@SheenaGreitens) December 2, 2019
The population is ageing due to greater longevity, as per the reports. According to the data, the number of people over age 65 reached 12.6 per cent of the total population at the end of 2019 which is 0.7 per cent up from the previous year. On the other hand, China's population managed to stand at 1.4 billion by the end of 2019 which is 4.67 million increase from the previous year. Its workforce continued to shrink last year. It marked the eighth consecutive year of decline and the workforce is expected to decline by as much as 23 per cent by 2050.