China’s population is projected to decrease by approximately 60 million people over the next decade, according to a recent report.
Operative Information Center-OMM reports that the findings were released by the Rhodium Group, an analytical firm focusing on demographic trends in the country. The report emphasizes that the current dynamics of birth and death rates represent an "open threat" to the Chinese economy, with the annual rate of decline potentially reaching 7.6 million people by 2035.
The demographic crisis is largely attributed to the legacy of the "one-child policy" implemented in the late 1970s, which has led to an aging population and a significant gender imbalance. Although the Chinese government began easing restrictions in 2013 and eventually allowed three children per family in 2021, birth rates have continued to fall. According to China’s National Bureau of Statistics, the population recently decreased by 3.39 million to 1.404 billion, with a birth rate of 5.63 and a death rate of 8.04 per 1,000 people.
This demographic shift in China, the world's second-largest economy, has significant implications for global supply chains and labor markets. Economists suggest that a shrinking workforce may lead to higher labor costs and a potential slowdown in global economic growth, as China has traditionally served as a primary driver of industrial production and consumption. The situation mirrors challenges faced by other East Asian nations, though the scale of China's population makes the economic transition particularly complex for the global financial system.
