How Can China Cope With an Increasingly Aging Population?

According to a recent release by the Ministry of Civil Affairs， the number of people over the age of 60 in China is set to surpass 300 million during the period of Chinas 14th Five-Year Plan （2021-25）， indicating that China will fall into the category of a moderately aging society. As a consequence of the one child policy， Chinas population growth is currently slowing， and the elderly are making up an increasing proportion of the population. At the same time， government statistics indicate Chinas working-age population has been shrinking since 2012.

In five to 10 years time， the parents of those born in the 1980s will gradually pass the threshold of 70， and an increasing number of elderly people requiring extra nursing and care will be a tough test for the country.

An aging society also means increasing burdens on families， especially when urban families were allowed to have only one child for so many years. Children of these families， who are now groaning under heavy housing debts and huge expenditures for their own childrens education， have no siblings to share the burden of caring for aging parents. In most cases， these people often work far away from their parents， and are thus unable to directly participate in their care. So a well-developed social safety net for the elderly is particularly important. Nevertheless， Chinas national pension funds may not be sufficient to support so many elderly people and offer all of them a comfortable life.

For this reason， finding sufficient funding to support the pension system is an urgent issue. Worse still， a shrinking working-age population means lower productivity and less social wealth， in addition to overstretching the healthcare system and related services.

On the other hand， some argue that an aging society may boost the silver economy， thus adding to overall economic development. Others suggest technological progress may help to fill the labor gap caused by the loss of working-age people.

A safer safety net

Yang Ge （www.legaldaily.com.cn）： An aging society is a test of the countrys public finance and social safety net. In 2016， several provinces reported that their social security funds， or pension funds， were in overdraft. The problem was temporarily solved thanks to nationwide coordination and with the help of other insurance products. However， under the pressure of the economic downturn， pension funds may again fall into overdraft during the 14th Five-Year Plan period.

An aging population will also test the social welfare and healthcare systems， as well as community services. As an increasing number of parents of only children pass the threshold of 60 or even 70， the demand for social services for the elderly is certain to rise.

Community care for the elderly in China is lagging behind and unable to supplement or support home-based care for the aged. Many existing aged care facilities are unprofessional and unlicensed. Some nursing homes find it hard to operate， depending on razor-thin profits， while others charge much more than ordinary people can afford.

Moreover， Chinas healthcare system is struggling to meet the demand of a moderately aging society. The aged have a huge demand for health resources and this unbalanced distribution of health resources， combined with a disproportionate concentration of quality resources in big cities further exacerbates the difficulties faced by the elderly in living a comfortable life in their later years.

Statistics show that when more than 17.5 percent of the population requires aged care support， the impact of demographic changes on the countrys economic growth will become negative. According to data from the National Bureau of Statistics， this figure reached 17.8 percent in China in 2019. Therefore， it is urgent to prepare to cushion the future negative impact of an aging population. We must take advantage of opportunities created by technological innovation to upgrade services and industries relating to aged care. It is also necessary to continue reforming the social security system， so that the elderly may be more comprehensively covered by the safety net. Last but not least， a friendly social environment that respects and cares for the elderly is as important as these systems.

To cope with the aging population is by no means as simple as merely supporting the elderly. It is a serious issue closely linked to national economic management， social development， cultural heritage and even the nations long-term prosperity.

Chi Fulin （www.sohu.com）： Changes happening in Chinas demographic structure are bringing a series of deep structural conflicts and challenges. The problem facing us now is how to effectively cope with these challenges and provide a decent safety net to the elderly at a time when China is still working hard to grow its economy.

Actually， accelerated aging implies huge potential for the silver economy， which is expected to become an important driving force for Chinas economic growth. However， there is currently a shortage of products and services designed for the elderly， as well as issues with quality and the range of products available. For example， currently， China requires at least 10 million nursing staff to assist the elderly in their daily life， but the actual number of available nursing staff is less than 1 million. If senior citizens upgraded and expanded demand is successfully transformed into a promising industry， then the problem is likely to be effectively solved.

Demographic structural changes are also causing a dilemma. When the Chinese society is under the pressure of accelerated aging of its population， the flexibility of its macroeconomic policies is squeezed. For example， in order to stimulate market vitality and spur economic growth， tax and fee reductions for businesses are necessary， including lowering pension premiums. However， accelerated aging demands everincreasing expenditures for caring for elderly by both the government and the private sector.

To resolve the structural conflicts， the answer lies in structural reforms. China needs new policies and industries to lessen the impact of massive aging among its population.

A common problem

Cai Wu （www.ce.cn）： Aging is an inevitable tendency of the worlds population. The problem of aging and of appropriate responses to it concerns not only social and economic development， but also cultural issues relating to human civilization.

The accelerated pace of aging poses a tough task for China， a country currently struggling in a critical transition period. China has to deepen its structural reforms so as to better cope with emerging problems in the new era.

While China has experience from its own successful development in the past four decades， it must also look to the rest of the world for experience and examples. In particular， it must absorb successful experiences from countries that are doing a good job of coping with an aging population， so as to enrich its own ideas and policies.

Meanwhile， given Chinas own national condition， we also need to turn to Chinese culture and tradition for solutions. Without making full use of Chinas own ancient culture on ways to care for the elderly， the problem of aging is difficult to solve.

Chinese culture requires society to respect and be kind to the elderly. Thus， to support the elderly is not simply a question of offering them enough food and clothes， its also about satisfying their demands in other aspects. We need to identify a proper way to coordinate their demands with the overall social environment and economic development.

The government can help to develop social enterprises that are both public welfare-oriented and commercial， which offer healthcare services and entertainment， to the elderly. Public culture and educational institutions should also open to the elderly， providing them with continuous education and cultural activities. At the same time， more social organizations need to be set up to fill the gap not filled by the government and enterprises， so that the demands of the elderly can be adequately met. On the whole， the market mechanism needs to play a bigger role in the future than today.

The pace at which the Chinese society is aging in tandem with Chinas social and economic reforms， so the solution depends on policy improvement and continuous reforms. Meanwhile， aging is a global issue， so despite some unique features and national conditions， some problems are common to all. China can learn from other countries after comparing its own conditions with them to solve the aging problem effectively.