On July 10, 2012, Wang Feng, the Director of the Brookings-Tsinghua Center, spoke at the 2012 Future China Global Forum that was held in Singapore. At the forum, Wang stated that China is trapped in a severe, irreversible demographic crisis.
According to Wang, the current ratio between the number of working-age people (age 20 to 59) and older people (60 and over) is 5:1. Wang predicted that the ratio will fall to 2:1 by 2030. More and more elderly families will have only one child. This will not only impact the labor market; it also will also have a political impact. It will require institutional innovation. Wang observed that, although investment in large projects and in infrastructure may bring short term results, the more important and urgent need is for improvements in public health-care and the social security system and for pressing ahead with institutional reform.
Source: Caixin, July 10, 2012
http://economy.caixin.com/2012-07-10/100409420.html