Big news out of China today: The country is loosening its infamous “one-child” policy. It’s not eliminating the policy completely. Just creating more loopholes.
Why is China doing this? In part because the existing policy has created a demographic/economic problem for the country, which is ageing rapidly, even before it gets rich.
These two charts from Morgan Stanley from January show how China’s demographics are turning in a negative way, and how such turns frequently presage economic weakness.