The world’s most populous country has reached a pivotal moment: China’s population has begun to shrink, after a steady, yearslong decline in its birthrate that experts say will be irreversible.
The government said on Tuesday that 9.56 million people were born in China in 2022, while 10.41 million people died. It was the first time deaths had outnumbered births in China since the early 1960s, when the Great Leap Forward, Mao Zedong’s failed economic experiment, led to widespread famine and death.
Births were down from 10.6 million in 2021, the sixth straight year that the number had fallen. That decline, coupled with a long-running rise in life expectancy, is thrusting China into a demographic crisis that will have consequences in this century, not just for China and its economy but for the world, experts said.
The news comes at a challenging time for the government in Beijing, which is dealing with the fallout from the sudden reversal last month of its zero-tolerance policy toward COVID.
Over the past four decades, China has emerged as an economic powerhouse and the world’s factory floor. That transformation led to an increase in life expectancy that contributed to its current situation — more people getting older while fewer babies are born. By 2035, 400 million people in China are expected to be over 60, accounting for nearly a third of its population.
That trend is hastening another worrying event: the day when China will not have enough people of working age to fuel the high-speed growth that made it an engine of the global economy. Labor shortages will also reduce tax revenue and contributions to a pension system that is already under enormous pressure.
The result, some experts have argued, could have implications for the global order, with India’s population poised to outgrow China’s this year, according to a recent estimate from the United Nations.
Chinese officials last year conceded that the country was on the verge of a population decline that would likely begin before 2025. But it came sooner than demographers, statisticians and China’s ruling Communist Party had anticipated.
Officials have taken steps to try to slow the decline in births. In 2016, they relaxed the one-child policy that had been in place for 35 years, allowing families to have two children. In 2021, they raised the limit to three.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.