Page 8 - THE SOUTH CHINA BUSINESS JOURNAL
P. 8
PTH was announced that the family planning policy
will be further optimized by allowing couples to
3 have three children. This update to the policy is
designed to address issues relating to the slowdown
Automation drive to counteract in population growth and the fast aging population
shrinking labor pool cohort. Supporting measures will be launched as
well, such as developing universal childcare service,
As China’s population ages, its working age promoting fair education, reducing family education
population share is declining. In 2020, there cost, improving maternity leave and maternity
were 894.38 million people between 15 and 59, insurance, and preferential tax and housing policies,
representing 63.4 percent of the total population, etc. However, details are not yet available at this
down from 70.1 percent in 2010. time. It is expected that the announcement will
be followed up by policies and incentives so the
Further, China’s fertility rate was 1.3 children per
woman in 2020, significantly below the replacement 4measure gains appeal to the public.
rate of 2.1 percent and the government’s 2016 Youth trends towards
target of 1.8 by 2020. This means that the shrinking higher education
working age population will be a long-term trend.
China’s census findings revealed rapid improvements
Young Chinese adults frequently cite rising living in education levels. According to the 2021 census,
costs, unaffordable property, and uncertain career 218.36 million people in China are university
paths as major reasons for delaying parenthood or graduates, a 73 percent increase from 2010.
limiting the size of their families.
As a share of the population, 15.5 percent held a
The shrinking labor pool may lead policymakers to university or vocational college degree, compared
raise the official retirement age from 60 years for to 8.9 percent in 2010. In addition, the country’s
men, 55 years for women, and 50 years for women illiteracy rate fell from 4.08 percent to 2.67 percent.
in blue-collar jobs, which is still low compared to
most other countries. Although China’s fertility rates are low, the size
of its young population was slightly higher than
Where the opportunity lies many experts expected. In 2020, 17.95 percent of
the population was 14 years or younger – a total of
A smaller labor force will add greater urgency for 253.38 million – up from 16.6 percent in 2010.
businesses to adopt advanced robotics, artificial
intelligence, and other forms of automation. China Where the opportunity lies
is already the largest market in the world for
industrial robotics, and still the fastest growing, as The popularity of higher education and the bigger
it is responsible for about one-third of all sales. than the expected size of the youth cohort means
that education will continue to be among the
Moreover, policies such as Made in China 2025 country’s most in-demand services going forward.
and the 14th Five Year Plan offer a combination
of market incentives and planning for investment Chinese families value education as essential for
into and adoption of automation technologies and upward mobility in an increasingly competitive job
tech innovation. market, and the government’s plans to reorient the
country’s economy towards services and innovation
require a highly educated young workforce.
Education services in China start from a young age
due to the country’s intense academic competition
– before- and after-school private K-12 tutoring, for
example, is a US$120 billion industry.
5 AMCHAM SOUTH CHINA
will be further optimized by allowing couples to
3 have three children. This update to the policy is
designed to address issues relating to the slowdown
Automation drive to counteract in population growth and the fast aging population
shrinking labor pool cohort. Supporting measures will be launched as
well, such as developing universal childcare service,
As China’s population ages, its working age promoting fair education, reducing family education
population share is declining. In 2020, there cost, improving maternity leave and maternity
were 894.38 million people between 15 and 59, insurance, and preferential tax and housing policies,
representing 63.4 percent of the total population, etc. However, details are not yet available at this
down from 70.1 percent in 2010. time. It is expected that the announcement will
be followed up by policies and incentives so the
Further, China’s fertility rate was 1.3 children per
woman in 2020, significantly below the replacement 4measure gains appeal to the public.
rate of 2.1 percent and the government’s 2016 Youth trends towards
target of 1.8 by 2020. This means that the shrinking higher education
working age population will be a long-term trend.
China’s census findings revealed rapid improvements
Young Chinese adults frequently cite rising living in education levels. According to the 2021 census,
costs, unaffordable property, and uncertain career 218.36 million people in China are university
paths as major reasons for delaying parenthood or graduates, a 73 percent increase from 2010.
limiting the size of their families.
As a share of the population, 15.5 percent held a
The shrinking labor pool may lead policymakers to university or vocational college degree, compared
raise the official retirement age from 60 years for to 8.9 percent in 2010. In addition, the country’s
men, 55 years for women, and 50 years for women illiteracy rate fell from 4.08 percent to 2.67 percent.
in blue-collar jobs, which is still low compared to
most other countries. Although China’s fertility rates are low, the size
of its young population was slightly higher than
Where the opportunity lies many experts expected. In 2020, 17.95 percent of
the population was 14 years or younger – a total of
A smaller labor force will add greater urgency for 253.38 million – up from 16.6 percent in 2010.
businesses to adopt advanced robotics, artificial
intelligence, and other forms of automation. China Where the opportunity lies
is already the largest market in the world for
industrial robotics, and still the fastest growing, as The popularity of higher education and the bigger
it is responsible for about one-third of all sales. than the expected size of the youth cohort means
that education will continue to be among the
Moreover, policies such as Made in China 2025 country’s most in-demand services going forward.
and the 14th Five Year Plan offer a combination
of market incentives and planning for investment Chinese families value education as essential for
into and adoption of automation technologies and upward mobility in an increasingly competitive job
tech innovation. market, and the government’s plans to reorient the
country’s economy towards services and innovation
require a highly educated young workforce.
Education services in China start from a young age
due to the country’s intense academic competition
– before- and after-school private K-12 tutoring, for
example, is a US$120 billion industry.
5 AMCHAM SOUTH CHINA
