context: China is confronting an unprecedented demographic shift as its population rapidly ages, creating significant economic and social challenges. With nearly 300 million citizens aged 60 and above, the nation is transitioning to a moderately ageing society without the economic affluence seen in other ageing countries like Japan.
China faces unique challenges with its rapidly ageing population and economic preparedness
- by the end of 2023
- China had 297 million people aged 60 and above
- with 216.76 million aged 65 and above, making up 15.4 percent of the population
- the elderly population grew from 126 million (10.46 percent) in 2000 to 297 million (21.1 percent) in 2023
- exceeding the total population of all countries except India and the US
- approximately 50 million elderly are disabled or semi-disabled
- placing a significant burden on society and families
- China had 297 million people aged 60 and above
- low per capita GDP when ageing rate is 13.5 percent:
- China: US$10,000
- Japan: US$36,000
Li Wei 李伟 China Economic and Social Council vice chair stressed the need for urgent measures in three areas: people, places and money
- people
- 500,000 elderly care workers for 50 million disabled elderly, a number that may exceed 120 million by 2050
- recruiting workers is difficult due to high labour intensity and low pay
- locations
- the ‘9073’ strategy aims for 90 percent of elderly to receive home care, 7 percent community care and 3 percent institutional care
- requires improving community care infrastructure and developing a professional workforce
- finance
- efforts should focus on both supply and demand
- e.g. improving systems for economic, medical and care guarantees to enhance the elderly's payment capacity and increasing investment in elderly care infrastructure
The silver economy presents significant potential for social and economic benefits. There are development opportunities in commercial health insurance, long-term care insurance and areas such as management, rehabilitation and mental comfort.
In a market economy, the government should ensure basic coverage and provide timely assistance, creating favourable conditions for the market-oriented elderly care industry to innovate and develop. Li stresses that the government cannot shoulder all responsibilities and it must mobilise market and family resources to meet diverse elderly care needs.