China's demographic time bomb

China's workforce is shrinking so fast that it will soon find itself at a competitive disadvantage to India's booming population, according to a recent paper by Deutsche Bank.

China's demographic time bomb

China’s rapid economic growth and ineluctable rise faces an unavoidable threat.

Well-flagged dangers, such as asset price bubbles exploding, hidden non-performing bank loans being exposed, inflation adding to rumbling social discontent, or consumption failing to catch up with years of investment in fixed-capital formation, might turn out to be merely temporary glitches, if they materialise at all.

However, that’s not the case for what amounts to China’s ticking demographic time bomb. Unfortunately,...

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