Editorial | As China ages, nurturing the silver economy could help drive growth

Beyond technological competitiveness, it is important for China to build an elderly care system that supports an increasingly ageing populace

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An elderly man shops at a shoe store in Beijing, China, on May 19. Photo: EPA-EFE

Published: 7:15am, 19 Nov 2025

Beyond the technology race, one of the biggest challenges facing China is the shrinking and ageing of its population. After three consecutive years of decline up to 2024, the population is expected to continue falling by about 0.2 per cent a year for the next decade, despite efforts to encourage marriage and child-bearing.

This raises questions about sustaining economic expansion to meet economic growth targets. Ageing stemming from greater longevity and fewer births is leaving a shrinking workforce to support an increasing number of elderly. At the same time, rapid ageing prompts comparisons with population ageing and shrinking in Japan, which has suffered “lost decades” of slow growth. The counterargument is that economic expansion is not shaped only by a growing population and workforce, but also by modern technology.

Population ageing could put pressure on social security and healthcare systems and increase fiscal strain. Ageing is also testing the Confucian concept of a lifelong duty to care for one’s parents.

The government is continuing to respond, on top of measures such as raising the retirement age, subsidising new parents and providing free preschool education. In its proposal document for China’s next five-year plan, the Communist Party’s Central Committee called for “improving the supply of basic elderly care services, expanding urban-rural care networks and upgrading public infrastructure to make it more accessible”. The committee also recommended promoting integrated medical and elderly care, rolling out long-term care insurance and strengthening support systems for seniors with disabilities or dementia.

Beyond technological competitiveness, therefore, it is important for China to build up an elderly care system, not only in public health and social security terms but also with regard to the silver economy and supporting infrastructure, such as training in nursing and elderly care. This is a challenge – and also an opportunity – for a country that has room to catch up in growth of the services sector, particularly related to this kind of social caring.

One of the main economic goals has been building infrastructure, mainly to support manufacturing. More investment in how to better plan and build cities, in urban planning to support a greater proportion of elderly and so on could create a new growth area for investment, infrastructure building and consumption.

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