When most people think of China, they think of its growth and massive population over 1 billion. What they don’t think of is that that population may have peaked, and that could have a huge impact on the country’s workforce.
Dylan Grice pointed out in a piece from last year for Societe Generale that the Chinese workforce is about to do the same thing Japan’s did: shrink. This reduction will be a result of the country’s one-child policy, which is now coming home to roost. This shrinkage could cripple economic growth and be a one of the triggers for a Japan style bubble burst and lost decade in China.
From Dylan Grice of Societe Generale: