China’s explosive growth is testing the managerial competence of the relatively new leadership in Beijing.
Some of the problems are the result of poor planning; others stem from the mainland’s expansion rate, which, despite attempts to cool it, still tops 9%.
The population is ageing, the number over 65 rising by 35m in the past decade. When the working population peaks at 950m in 2020, the number of over-65s is expected to be 170m. By the middle of the century, they will make up a quarter of the population.
But there is little pension provision and the government will have to launch a big scheme – probably enlisting foreign and Chinese insurance companies – to fund part of pension provision privately.