China, Japan, South Korea, and Taiwan are plunged into a demographic freefall, facing plummeting birth rates and aging populations that threaten to undo their economic stability. This collapse is already altering the very fabric of these nations, with no simple solutions on the horizon.
Japan, grappling with 15 years of population decline, is witnessing its lowest birth rates on record, with deaths surpassing births. South Korea’s fertility rate is the world’s lowest, and China’s population will shrink by over 50 million in the next decade. These trends signal an era of diminished labor forces and shrinking consumer bases.
China, Japan, S. Korea, Taiwan are in a collective demographic freefall, collapse, implosion…what happens now amid collapsing domestic consumer bases is anybody's guess but there will be nothing "business as usual" going forward…expect the highly unbelievable and unexpected… pic.twitter.com/HVaO1Ywv0i
— CH (@Econimica) January 4, 2025
The economic impact is dire. Reduced workforces mean slower growth, decreased productivity, and severe strain on welfare systems. Japan’s ¥39 trillion economic boost package is struggling to reverse the trend, and China’s policy shifts, like the three-child policy, have failed to halt population decline.
A shocking consequence looms: national security risks. South Korea, with one of the largest militaries, faces a future without enough young men to maintain its defense forces. This demographic crisis could trigger instability both regionally and globally.
The coming crisis will reshape everything, from military strength to business models, and no easy path is ahead for Asia’s once-thriving economies.
Sources:
https://www.newsweek.com/japan-news-plans-tackle-population-crisis-2025-2006421
https://www.newsweek.com/south-korea-news-plans-tackle-population-crisis-2025-2007358
https://www.newsweek.com/how-east-asia-population-crisis-china-japan-taiwan-south-korea-news-1944706
https://www.newsweek.com/china-news-50-million-population-decrease-1988679
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