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China's ageing population threatens switch to new economic growth model, state-run Chinese Academy of Sciences sees the pension system running out of money by 2035 (www.reuters.com)

submitted 10 months ago by tardigrada@beehaw.org to c/news@beehaw.org

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Cross-posted from: https://beehaw.org/post/11191188

Household consumption's share of economic output in China is already one of the lowest in the world, while many provincial governments - responsible for pensions and elderly care - are deep in debt as a result of decades of credit-fuelled investment-driven growth.

"China's age structure change will slow down economic growth," said Xiujian Peng, senior research fellow at the Centre of Policy Studies (CoPS) at Victoria University in Melbourne.

In the next 10 years, about 300 million people currently aged 50 to 60 - China's largest demographic group, equivalent to almost the entire U.S. population - are set to leave the workforce at a time when pension budgets are already stretched.

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[–] QuentinCallaghan@sopuli.xyz 6 points 10 months ago (1 children)

I've heard advice to invest in Indian companies instead because of this issue. The median age in India is around 30 years.

[–] megopie@beehaw.org 4 points 10 months ago

Lot of talented highly educated people as well. There are some difficulties though, namely in regards to how… complicated the legal situation is for companies and investors is. It’s very much a system where the bureaucracy is so thick that you need someone who has connections to get through it all.

This is not to say that laws in India should be changed to suit the needs of foreign investors, just that the internal complexities make it difficult market to work in as a foreigner. Perhaps that’s for the best given the history of foreign “investment” and “business interests” in India.