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China is launching a network of “bank trains” for older tourists as part of its plan to unleash the expenditure of one of the world’s fastest population.
Official action plans announced by several government departments on Tuesday outlined the need for trains equipped with medical and old age services. By 2027, such a network of trains should cover the nation, officials said.
China’s aging population will shape decades with one-child policy that limits fertility rates, bringing a deep, long-term challenge to the world’s second largest economy
According to the State Department, one in five Chinese people would be over 60 by the end of 2022, and that percentage was expected to increase in the coming years.
This demographic crunch comes when Chinese policymakers tackle low consumer demand, a historic slowdown in property, and a lower growth rate than before the pre-obstetric era.
Policy documents on Tuesday were released by agencies including the Tourism Bureau and the Civil Affairs Department ministries, saying that silver tourism trains are “an important part of promoting service consumption.”
The project was covered by India as the world’s most populous country in 2023 amid a broader ambition to develop a “silver economy” in China, following a long-standing decline in fertility rates. . The government says the silver economy is worth RMB7TN ($95.8 billion) last year and is projected to hit RMB30TN by 2035.
China’s 1.4 billion population declined for the third consecutive year in 2024 despite efforts by the government to encourage family formation as part of a “birth-friendly society.” Marriage also plummeted.
Births increased last year, the first increase since 2016 and the record low rebound in 2023. The birth rate was 6.77 per 1,000 people, compared to 11.17 per 1,000 births in the UK in the same year.
China’s retirement age is also the earliest in the world, but policymakers last year outlined plans to gradually raise it as the economy faces a low working-age population. The retirement threshold rises from 60 to 63 for men and from 55 to 58 for women in white-collar jobs. The retirement age for women in blue-collar jobs increases from 50 to 55.
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CCTV, a state-backed broadcaster, operated a segment on trains on Tuesday, where senior passengers danced and played Majong, a common sight in early morning urban parks in mainland China. A red banner promoted “Special Silver Train Release.”
The governing approach of the “Xi Jinping Thought” called later last year at the top of the Silver Train Action Plan, cited “active” efforts to boost consumption.
China’s economy has been approaching deflationary territory for the past few months. According to official data released over the weekend, consumer prices rose 0.5% per year in January.
Additional Reports by Wang Xueqiao in Shanghai
