A Tale of Two Sides: How Population Ageing Hinders Economic Growth in China

China has experienced the typical stages of economic development suggested in the economic theories of the relationship between population and economic development. In terms of the general trend of demographic transition, China displays unique characteristics, namely the fastest-ageing society, the largest elderly population and the "growing old before getting rich" phenomenon. While China's working-age population hit its peak in 2010, bringing about supply-side impacts on economic growth, the impending peak of its total population may have demand-side impacts on its economic growth. This article explores how the stagnant population tends to weaken China's consumption and highlights several policy implications drawn from the findings.