How to solve China’s aging population problem

As the world’s second largest economy in 2022, China simultaneously faces the challenges and opportunities posed by the Fourth Industrial Revolution. This is a fruitful solution to the demographic challenges of aging and gender inequality as the country continues its transition to a new, more environmentally friendly, data-driven economy. Shows possible cases. Healthcare, workforce re-skilling and gender equality are three priority areas of domestic policy.

To address the set of linked challenges facing China, we need to present a comprehensive and sustainable growth vision that pays particular attention to older people and women.

China is aging rapidly, with a population of 267 million over the age of 60, or 18.9% of the total population, which could reach one-third by 2050. With lower fertility rates and early retirement age, existing welfare infrastructure will continue to grow. Under coercion. Renewal of the welfare system is essential for China to maintain its competitiveness and the welfare of its people. The solution to China’s aging is to upgrade healthcare services to be more integrated, age-friendly and health-conscious. It is important that welfare reform works in tandem with social policy, making active aging an integral part of economic growth and linking health to wealth and common prosperity.

Closely related, re-skilling the workforce should be a priority for senior workforce and those facing employment risks from automation. Older workers in China face permanent barriers to employment, especially in the information technology industry. Reskilling does more than just improve the employability of the senior workforce. It will also improve the quality of the overall workforce, helping China’s economic restructuring and continued growth in its global value chain.

China’s aging challenges cannot be addressed without improving women’s well-being. Even if China’s fertility rate reaches record lows in 2021, fertility rates should not be just targets. Rather, it should reflect the willingness and ability of women to start a family based on free and informed choices. Ancillary social policies and legal systems must be implemented. Equal pay for equal work, entry and re-entry into a fair workforce, liberation from harassment, and access to legal means are one of the key elements of the big picture.

Here are three action courses you need to take to achieve the above vision:

Upgrading your healthcare system involves two steps. First, health care needs to extend beyond the treatment of physical illnesses to include mental health, occupational health, full cycle care and wellness. In line with China’s national strategy for active aging, health care services need to incorporate key elements such as preventive care and the scientific use of traditional herbal medicine (TCM). Despite the pandemic, appropriate resources should also be allocated to the study and treatment of non-communicable chronic diseases.

Second, the experience of COVID-19 in China demonstrates the power of digital technology to rapidly improve the quality and efficiency of healthcare. In general, the same should be applied to health care in order to integrate medical data and services both vertically and horizontally across institutions at all levels. Measures should also be taken to achieve equal distribution of medical resources between regions.

Legal and institutional measures need to be implemented to improve health care while eliminating age discrimination in the workplace and promoting flexible and age-friendly work arrangements. Short-term re-skilling programs, including those tailored to the digital economy, need to be more accessible to everyone, including the senior workforce. Digital literacy is important for both the elderly and the young. Awareness campaigns and training modules on anti-ageism are also desirable for employers. These measures will strengthen the overall digital measures of the Chinese economy, as the “silver economy” occupies a large growing share.

Population growth cannot be sustained without ensuring affordable access to women’s health care, childcare, education and employment opportunities. China’s gender inequality must be closed in many directions, from medical infrastructure to social welfare policies, employment laws and cultural norms.

Free or affordable childcare needs to be available to all working women in China, both for public and private employers. Awareness campaigns should advocate fair distribution of childcare and household chores for male spouses and partners. In addition, fertility technology is still a poorly utilized industry in China, largely due to lagging legal provisions. Having easy access to artificial insemination therapy (ART), including egg freezing services, should be a top priority for legislators and policy makers. Doing so creates many business opportunities and can meet the urgent needs of millions of people in China. Lessons from developed countries where some employers provide ART subsidies to their employees will shine.

Members of China’s Global Future Council who contributed to the article:

Former Kaumi, Vice President and Chief Representative of United Way Worldwide China

Gao Feng Advisory Company, Founder and Chief Executive Officer, Edward Tse

Li Xin, Managing Director of Caixin Media, Caixin Global

Economist Group, Greater China, Managing Director, Liu Qian

Kishore Mabbani, Special Fellow, Institute for Asian Studies, National University of Singapore

Xue Lan, Dean, Schwarzman College, Tsinghua University