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China Briefings

Reports on China issued by Samsung Economic Research Institute

China Business Intelligence No. 196

China Business Intelligence No. 196

Samsung Economic Research Institute Beijing Office

June 21, 2011

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According to the National Bureau of Statistics of China's sixth census data, China's population increased to 1.34 billion, but the birth rate declined to 1.4 children and aging has accelerated. Also, the labor and total populations are expected to shrink from 2015 and 2025 respectively. Population decrease can cause problems such as wage increase, economic slowdown and burden on social security. The government needs to take necessary action to prevent such outcomes. As a surge in the birth rate is unlikely due to low income and high childcare cost, the government can loosen the One-Child Policy. In the industrial sector, companies may consider relocation to save costs while pioneering highly potential markets such as medical and elderly care.

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