How the Demographics of China and India are Diverging
Within popular discourse, especially in the West, the profiles of China and India have become inextricably linked.
Aside from their massive populations and geographical proximity in Asia, the two nations also have deep cultural histories and traditions, growing amounts of influence on the world stage, and burgeoning middle classes.
China and India combine to be home to one-third of the world’s megacities, and they even had identical real GDP growth rates of 6.1% in 2019, based on early estimates by the IMF.
But aside from the obvious differences in their political regimes, the two populous nations have also diverged in another way: demographics.
As seen in today’s animation, which comes from AnimateData and leverages data from the United Nations, the two countries are expected to have very different demographic compositions over time as their populations age.
The easiest way to see this is through a macro lens:
Populations of China and India (1950-2100)
|🇮🇳 India||0.38 billion||1.37 billion||1.64 billion||1.45 billion|
|🇨🇳 China||0.55 billion||1.43 billion||1.40 billion||1.06 billion|
Although the countries have roughly the same populations today — by 2050, India will add roughly 270 million more citizens, and China’s total will actually decrease by 30 million people.
Let’s look at the demographic profiles of these countries to break things down further. We’ll do this by charting populations of age groups (0-14 years, 15-24 years, 25-64 years, and 65+ years).
China: Aftermath of the One-Child Policy
China’s one-child policy was implemented in 1979 — and although it became no longer effective starting in 2016, there’s no doubt that the long-term demographic impacts of this drastic measure will be felt for generations:
The first thing you’ll notice in the above chart is that China’s main working age population cohort (25-64 years) has essentially already peaked in size.
Further, you’ll notice that the populations of children (0-14 years) and young adults (15-24 years) have both been on the decline for decades.
A reduction in births is something that happens naturally in a demographic transition. As an economy becomes more developed, it’s common for fertility rates to decrease — but in China’s case, it has happened prematurely through policy. As a result, the country’s age distribution doesn’t really fit a typical profile.
India: A Workforce Peaking in 2050
Meanwhile, projections have India reaching a peak workforce age population near the year 2050:
By the year 2050, it’s estimated that India’s workforce age population will be comparable in size to that of China’s today — over 800 million people strong.
However, given that this is at least 30 years in the future, it raises all kinds of questions around the economic relevance of a “working age” population in a landscape potentially dominated by technologies such as artificial intelligence and automation.
While it’s clear that the world’s two most populous countries have some key similarities, they are both on very different demographic paths at the moment.
China’s population has plateaued, and will eventually decline over the remainder of the 21st century. There is plenty of room to grow economically, but the weight of an aging population will create additional social and economic pressures. By 2050, it’s estimated that over one-third of the country will be 60 years or older.
On the other hand, India is following a more traditional demographic path, as long as it is uninterrupted by drastic policy decisions. The country will likely top out at 1.6-1.7 billion people, before it begins to experience the typical demographic transition already experienced by more developed economies in North America, Europe, and Japan.
And by the time the Indian workforce age group hits 800+ million people, it will be interesting to see how things interplay with the world’s inevitable technological shift to automation and a changing role for labor.
Meet China’s 113 Cities With More Than One Million People
China has the same amount of 1 million+ population cities as both North America and the EU combined. Here they all are, from biggest to smallest.
In 2010, China’s urban-dwelling population surpassed its rural population, marking a monumental demographic milestone in the country’s history.
Just three decades prior, China looked markedly different. Only 20% of Chinese citizens lived in urban areas, and many of today’s metropolises were still small villages.
Since then, huge swaths of the population have moved from farmland into cities, a shift that is still causing many urban areas to swell in size. Case in point is the growth of Guangzhou, which lays just north of Hong Kong. From 1980 to today, more than 18 million people moved into the city. A 40-year-old born in Guangzhou will have seen their small, regional city mushroom into one of the largest urban amalgamations on Earth.
Of course, this is just one example of a process that has been altering the landscape of cities from the coast of the South China Sea out to the Eurasian Steppe.
The One Million+ Club
According to Demographia’s World Urban Areas report, there are now 113 urban areas in China that surpass the one million population threshold. In comparison, North America and the EU combined have 114 urban areas that surpass one million people.
Below is a full breakdown of China’s one million+ club:
The massive scale of rural-to-urban migration isn’t just a major development within China, it has no parallel in modern history.
Since 1980, over half a billion people have moved from the countryside to an urban center. The construction of these new cities took a staggering amount of raw materials. Few data points highlight the scale of construction better than China’s cement production in recent years.
In 2018, Chinese construction used about 8x the amount of second place India, which has a similar population size.
Megacities on Megacities
Cities with over 10 million inhabitants are defined as megacities. China is already home to six megacities, with another three urban areas well on the way to achieving that status.
In fact, some megacities within close proximity have grown so large that they are merging into contiguous urban areas. The most prominent example of this phenomenon is in the Pearl River Delta region of China.
The Pearl River Delta region is not only home to the megacities of Guangzhou and Shenzhen, but also a number of other sizable cities that are quickly merging into a unified continuous entity containing up to 50 million people. Demographia still considers most of these cities to be separate labor markets — but as more connections form across the region, the Pearl River Delta could be poised to become the largest unified urban area in human history.
As megacities like Shanghai and Shenzhen have grown and developed, they’ve also become more expensive places to live and do business. The economic evolution of these cities has created opportunity for smaller, less developed cities to woo both residents and businesses.
This natural reshuffling has led to impressive growth in cities further inland like Zhengzhou, which sits 350 miles (630 kms) east of the coastline where many of the country’s largest cities reside.
Using the “build it and they will come” approach, the city converted a 160 square mile (410 sq km) patch of empty land into the Zhengzhou Airport Economy Zone (ZAEZ). The project has proven wildly successful, and the city even has the nickname “Apple City” thanks to the presence of Foxconn (which produces the iPhone) and a cluster of other smartphone manufacturers.
This airport-centered zone was developed with the full political and economic backing of Beijing as part of a broader effort to increase economic activity in China’s interior cities. Zhengzhou has nearly tripled in size over the last decade, a powerful testament to the shift in economic momentum.
China’s Inland All-Stars:
|Urban Area||Population 2010||Population 2019||Change (2010-19)|
Compare the numbers above to fast-growing cities in the U.S., such as Las Vegas or Phoenix, which managed 33% and 12% growth respectively over the last decade.
If this trend continues, China’s one million+ club will most likely expand once fresh census data is released in 2021.
How China Overtook the U.S. as the World’s Major Trading Partner
China has become the world’s major trading partner – and now, 128 of 190 countries trade more with China than they do with the United States.
How China Overtook the U.S. As the World’s Trade Partner
In 2018, trade accounted for 59% of global GDP, up nearly 1.5 times since 1980.
Over this timeframe, international trade has transformed significantly—not just in terms of volume and composition, but also in terms of the countries that the rest of the world leans on for their most important trade relationships.
Now, a critical shift is occurring in the landscape, and it may surprise you to learn that China has already usurped the U.S. as the world’s most dominant trading partner.
Trading Places: A Global Shift
Today’s animation comes from the Lowy Institute, and it pulls data from the International Monetary Fund (IMF) database on bilateral trade flows, to determine whether the U.S. or China is a bigger trading partner for each country from 1980 to 2018.
The results are stark: before 2000, the U.S. was at the helm of global trade, as over 80% of countries traded with the U.S. more than they did with China. By 2018, that number had dropped sharply to just 30%, as China swiftly took top position in 128 of 190 countries.
The researchers pinpoint China’s 2001 entry into the World Trade Organization as a major turning point in China’s international trade relationships. The dramatic shift that followed is clearly demonstrated in the visualization above—between 2005 and 2010, a number of countries tipped towards Chinese influence, especially in Africa and Asia.
Over time, China’s dominance has grown dramatically. It’s no wonder then, that China and the U.S. have a contentious trade relationship themselves, as both nations battle it out for first place.
A Tale of Two Economies
The United States and China are competitors in many ways, but to be successful they must rely on each other for mutually beneficial trade. However, it’s also the major issue on which they are struggling to reach a common ground.
The U.S. has been vocal about negotiating more balanced trade agreements with China. In fact, a mid-2018 poll shows that 62% of Americans consider their trade relationship with China to be unfair.
Since 2018, both parties have faced a fraught relationship, imposing major tariffs on consumer and industrial goods—and retaliations are reaching greater and greater heights:
While a delicate truce has been reached at the moment, the trade war has caused a significant drag on global growth, and the World Bank estimates it will continue to have an effect into 2021.
At the same time, China’s sphere of influence continues to grow.
One Belt, One Road, One Trade Direction?
China seems to have a finger in every pie. The nation is financing a flurry of megaprojects across Asia and Africa—but one broader initiative stands above the rest.
China’s “One Belt, One Road” (OBOR) Initiative, planned for a 2049 completion, is advancing at a furious pace. In 2019 alone, Chinese companies signed contracts worth up to $128 billion to start Chinese large-scale infrastructure projects in various countries.
While building new highways and ports abroad is beneficial for Chinese financiers, OBOR is also about creating new markets and trade routes for Chinese goods in Asia. Recent research found that the OBOR program’s infrastructure expansion and logistics performance improvements led to positive effects on China’s exports.
Nevertheless, it’s clear the new infrastructure network is already transforming global trade, possibly cementing China’s position as the world’s major trading partner for years to come.
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