The annual number of births in China has fallen for the first time since the central government relaxed its one-child policy. Some economists have warned that falling birth rates in China potentially threaten the development in China due to a rapid ageing of the population, which is likely to cause a shortage of workers. How true is this claim?
To be honest, the first impression when I see this claim is that these economists are still thinking that China is the world manufacturer for producing some basic products that do not require many intelligent and skilful workers. Moreover, they sort of ignore the development of advanced technology and the service sector in China. The Chinese company, DJI, leads the industry of civilian drones; recent years, the financial sector has been experiencing very rapid growth and expansion.
However, this is only my first expression. The development of technology does not only improve the productivity but also increases the number of opportunities. To take as many opportunities as possible, we need to more intelligent labours. In addition, many Chinese companies rely on the Chinese market, if the Chinese population size shrinks, these companies' businesses will also shrink.
The fall or very slow growth in the birth rate is likely to continue for the next several decades, as the modern urban lifestyle generally delays people getting married and having their children; therefore, it is important to find a way to generate growth with a shrinking population size, this might be more effective than finding a way to generate the population rate.
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