BEIJING: China’s population is set to decline sharply after 2025, despite a three-year-long one-child policy that was relaxed five years ago. Cai Fang, a member of the People’s Bank of China’s monetary policy committee, issued the warning. The population of the country will record its highest level in the next four years. After that, it will decrease sharply. This will significantly reduce consumer demand.
“When the total population enters negative growth (after 2025), there will be a shortage of demand,” Mr. Cai was quoted as saying by Hong Kong-based South China Morning Post on Sunday. “We need to pay attention to the impact of demographics on future consumption,” he said. Mr. Cai’s comments came as China is due to release its latest census later this month. Since 2016, Chinese couples have been allowed to have two children policy. “We should not hesitate and wait for the effects of existing birth policies,” the researchers said in a working paper published early this week. “The birth liberalisation should happen now when there are some residents who still want to have children but can’t. It’s useless to liberalise it when no one wants to have children,” it said.
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