Impact of China's Declining Workforce

China's working-age population is on a downward trend, with projections estimating a reduction from around a billion to 900 million in the next decade. This demographic shift poses a significant challenge for China's economy, potentially resulting in a Japanese-style economic stagnation. With fewer workers, there will also be a decrease in tax revenues, which could exacerbate economic difficulties. Additionally, the country faces related challenges, such as a deflating housing bubble and a contentious trade environment with the U.S. and Europe.