China’s family planning policies (introduced in the late 1970s) slowed population growth as the country industrialised – contributing to a stronger rate of growth across the early 2000s. However, this demographic dividend was a transitory effect, with China now suffering from a demographic drag as its population ages and its total workforce falls. The latest easing in population policies are intended to address this drag, but it remains unclear whether the change will be effective.

For further details, please see the China Economic Update – July 2021