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Population Composition of China

# Explanation of China's Population Pyramid

China's population composition exhibits characteristics of a "contracting pyramid," reflecting rapid transformation from historically high birth rates. With the introduction of the one-child policy in 1979, the birth rate declined sharply, and currently the proportion of working-age population (15-64 years old) shows a declining trend. The narrowing of the pyramid's upper section (young age) compared to the lower section (elderly) clearly demonstrates the progression of an aging and declining birthrate society.

This demographic trend signifies the end of the former "demographic dividend." While abundant labor drove economic growth in the early 2000s, the aging rate now increases rapidly, with projections that the population aged 65 and above will reach approximately 30% of the total by 2050.

These changes have serious implications for Chinese society and economy. First, there are concerns about labor shortages leading to rising wages and declining competitiveness. Second, rapid increases in social security expenditures for pensions, healthcare, and long-term care are increasing fiscal burden. Third, declining birth rates increase young people's hesitation about childbearing, predicting further population decline. To address these challenges, the Chinese government is hastening to implement birth encouragement policies and establish systems for an aging society.

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