China is preparing for new demographic reality

Published: 02.12.2019 Related countries:  China China

The State Council published comprehensive and guiding document for China to actively respond to aging population in short term (2022), medium term (2035) and long term to (2050). Access of foreign capital shall be permitted according to the plan.

It is estimated that by year 2030 China’s population over 60 years old will reach 360 million, accounting for a quarter of the total population. This is going to put pressure on social systems of the country as well as traditionally family life. According to statistics, from 2010 to 2018 the scale of China’s pension industry increase from 1.4 trillion RMB to 6.6 trillion RMB (an increase of 371.4%) and further rapid growth up to 22 trillion RMB is expected.  Therefore, China’s medium and long term plans for the aging population intends to establishment new pension institutions and social welfare institutions and open up foreign capital into the industry.