Republished with full copyright permissions from The Washington Daily Chronicle.

China’s population has faced a second consecutive year of decline, signaling a potential crisis for the world’s second largest economy. According to government data released recently, China’s overall population at the end of 2023 was 1.4097 billion, down approximately 2 million people from the previous year. This follows a similar decline of about 850,000 in 2022, marking the first population decrease in decades. Despite the seemingly small year-to-year decrease, experts warn that it represents a significant trend with far-reaching implications for the country’s growth prospects.

One of the major factors contributing to the population decline is the plummeting birth rate in China. The birth rate in 2023 was recorded at 6.39 per thousand, a notable drop from the 6.77 per thousand in 2022. The high costs associated with raising children, coupled with record-levels of youth unemployment, are contributing to a growing reluctance among Chinese couples to start families.

Conversely, the number of deaths in China saw a significant increase in 2023, reaching 11.1 million compared to 10.4 million in 2022. This rise was largely anticipated following China’s relaxation of its strict COVID-19 measures in late 2022.

Additionally, the recently released demographic data revealed that over 20% of China’s population is now aged 60 and above. This demographic shift poses a significant challenge, prompting China to unveil a plan aimed at boosting its “silver economy” in response to the issues brought on by an aging population.

As China continues to grapple with these demographic challenges, the implications for its future economic and social landscape are significant. The need to address and adapt to this ongoing population decline is becoming increasingly pressing for the country’s policymakers.

From the economic impact of a shrinking workforce to the strain on social welfare and healthcare systems, the implications of this population decline are wide-ranging. China’s response to these challenges will be closely watched, as it seeks to navigate and mitigate the consequences of an aging and dwindling population.