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China to enjoy the second population dividend

By Cheng Yingqun (chinadaily.com.cn) Updated: 2016-04-18 15:01

China is to enjoy the second population dividend that will change the dynamics of the country's economy, said Liu Qiao, associate dean of Guanghua School of Management of the Peking University.

Liu was addressing international companies about the latest economic policies and programs, including the government's supply-side reform and China's financial industry, at the China Now: 2016 Business Outlook conference in Beijing.

The event was co-hosted by the Guanghua School of Management of the Peking University, the British Chamber of Commerce in China and the China-Britain Business Council jointly to analyze the key domestic and international policies and trends that are shaping opportunities for foreign businesses in the country in 2016.

The rapid economic development in the past 35 years owes a lot to the population dividend, that is, the large number of cheap labor force.

Now that the nation is undergoing economic transition, Liu said he is quite positive about the economic future. He said China will have a large number of high quality labor force and also many consumers that ask for better goods and services, who will change the dynamics of the economy.

He added that China already had more than 100 million people with college graduate degrees in 2015. By 2030, the number of college graduates is going to reach 200 million.

Apart from 200 million well-educated labor force, China will have 400 million post 90s (people born during the 1990 to 1999) by 2040.

"They will have great demand for entertainment, education and even for healthcare. What they want, what they think will decide the future dynamics of China, and even change the industrial structure," he says.

Moreover, after 35 years of rapid economic development, there is huge number of entrepreneurs in China. For example, his school has already educated 6,000 EMBAs, who are successful, executives with international visions, and are also very innovative and eager to transform their companies from big companies to great companies. This will also contribute to the reshaping of China's economy.

Michael Charlton, director-general of the UK Trade & Investment, said there remain huge opportunities in China.

"Even a China growing significantly slower still offers British businesses a large expanding market," he said.

He said that the main areas that China's 13th Five-Year Plan aim to develop match with UK's strength, such as the focus on education and healthcare, innovation, green development, Made in China 2025, and Belt and Road Initiative. Each plan would help British companies to meet with more opportunities.

The Chinese economy is changing and the British Chamber and CBBC see a terrific opportunity for more British businesses to participate. UK goods exports to China have jumped five-fold since 2004 and services exports to China have doubled since 2010. Chinese investment in the UK remains Europe's highest and is diversifying into areas such as technology, financial services and retail. The opportunities are there for UK companies in a greater range of fields than ever.

More than 150 professionals and companies attended the discussions focused on financial reform, national policy and the future of foreign investment in China.

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