JIN DING/CHINA DAILY
In response to the profound demographic changes and the increasing proportion of elderly citizens in the country, China has put the development of the silver economy at the top of its labor agenda and has taken a number of steps to create a conducive business environment to meet the unique needs of the aging population .
The pioneering initiative will not only bring immediate benefits to ensure the well-being and dignity of older adults, but also bring long-term economic gains that will foster new development drivers, officials and experts said.
Her comments came after the State Council, China's cabinet, in January released a policy on developing the silver economy and improving the living conditions of the elderly – the country's first well-focused policy framework on this front.
The guidance defines the silver economy as an umbrella term that includes a range of economic activities aimed at providing products or services to older adults and helping citizens prepare for retirement.
The silver economy is characterized by its huge consumer base, extensive industrial chains and diverse business models covering primary, secondary and tertiary sectors, said Zhang Shixin, deputy secretary-general of the National Development and Reform Commission, the country's top economic planning agency.
Data released by the National Bureau of Statistics showed that there were 296.97 million people aged 60 and over in China at the end of last year, accounting for about 21 percent of the population. The number of people aged 65 and over reached 216.76 million, or 15.4 percent of the population.
The sheer size of China's elderly population results in a huge market with significant purchasing power. As people live longer and healthier lives, their demand for certain products and services is increasing, potentially leading to the creation of a variety of new companies, said Li Jia, deputy director of the Aging Society Research Center at Pangoal Institution.
China's silver economy is estimated to reach 19 trillion yuan ($2.9 trillion) by 2035, accounting for 28 percent of the country's total consumption and 9.6 percent of the national GDP, according to a report released by the Shanghai-based Fudan Institute of Aging.
According to the policy, China will build about ten high-level silver economy industrial parks in key regions, including the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and the Chengdu-Chongqing economic circle.
To create a supportive environment for the country's aging population, addressing pressing concerns and expanding essential services for older people will be a priority. The targeted efforts will be directed at expanding welfare canteen programs, improving accessibility of home-based elder care, optimizing health services for seniors and bridging gaps between urban and rural areas, the policy said.
According to the Ministry of Civil Affairs, as of the end of 2022, China had 387,000 elderly care facilities with a total of 8.29 million beds.
“However, addressing the urban-rural imbalance in elderly care services is a priority for the government as rural areas face challenges due to a lack of sufficient facilities and lower quality standards,” said Chen Gong, director of the Population Research Institute at Peking University.
The government should develop and implement policies that specifically target the urban-rural divide, including financial incentives for care providers to establish facilities in rural areas, regulatory frameworks to ensure quality standards are met, and measures to encourage healthcare professionals to work in rural areas. Chen added.
Despite the growth of essential service industries such as hospitality and health care for the older population, the diverse, differentiated and personalized needs of older adults are becoming more pronounced and urgent, analysts say.
They belong to different generations, have different physical and cognitive abilities, and may come from different cultural and socioeconomic backgrounds and represent different needs and desires, said Lou Feipeng, a researcher at Postal Savings Bank of China.
Demographic changes and improvements in living standards have led to a greater desire among older adults to improve their overall well-being and enjoy a higher quality of life. This trend is particularly notable among the post-1960 generation, who have experienced social and economic changes throughout their lives and have different expectations compared to previous generations, Lou added.
According to a survey conducted by the People's Bank of China, the country's central bank, residents aged 56 to 64 have more assets than other age groups, making them a key demographic in the silver economic market.
The survey also found that there was a significant shift in consumer behavior and preferences among the aging population between 2014 and 2020, with older adults increasing their investments in social engagement, healthcare and financial services for retirement.
To this end, the guideline identified seven key sectors with high growth potential, ranging from senior products and smart health products to anti-aging solutions, retirement financial services and senior-friendly tourism.
For example, by leveraging new technologies such as the Internet of Things, cloud computing, big data and intelligent hardware, the country aims to provide intelligent products and services tailored to the diverse needs of older adults, said Liu Ming, director of the Commission's Department of Social Development .
In the long term, China should embrace the idea of age integration and advocate universal concepts that overcome age barriers and create a more age-inclusive socio-economic environment, said Hu Zushuan, a researcher in the economic forecasting department of the China State Information Center.
To realize this vision, China should continue to promote the construction of barrier-free infrastructure and the development of a more senior-friendly society. To this end, efforts will be made to ensure that public spaces, retail outlets, hotels, cultural sites, tourism destinations and sports facilities are accessible and accommodating to people of all ages, Hu added.
As China realizes the immense potential of the silver economy, it is crucial to acknowledge the challenges that hamper its development. According to analysts, the country is currently facing problems such as a shortage of skilled workers, lack of motivation to invest and insufficient political support for certain industries.
A survey conducted by the China Research Center on Aging in Beijing found that the elderly care sector is grappling with several pressing issues, including low wages, a shortage of skilled professionals and a lack of stability within the workforce.
Addressing this challenge requires developing training programs, educational initiatives and incentives to attract and retain talent critical to the silver economy sector, said Xu Hongcai, deputy director of the Economic Policy Committee of the China Association of Policy Science.
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