Xi Jinping, the current president of China, in his annual New Year’s speech, mentioned for the first time since 2013 economic problems in the People’s Republic of China.  With Jingping mentioning problems in their economic sectors, something must have gone wrong.  

In the late 1970s and 1980s, many well-known companies started to move to China.  This move made much sense for production because of cheap land and the large workforce looking for jobs.  This migration of large company production helped push China into the largest economy behind America. It soon became one of the leading countries for production in the world.  This increase in gross domestic product made China one of the main producers of manufactured goods in Asia and across the world.  

As production increased China’s population also increased.  It is now estimated that they have over 1.2 billion people.  The only problem with this is that a majority of their population is on the older side.  Many companies are now moving their business out of China due to the economic trade war between the U.S and China, as well as the rising labor costs.  China’s population needs to steadily fix itself so they can internally fill job positions.  China builds large “ghost cities” where houses and skyscrapers are uninhabited.  Because of the limited work and aging population China might have a problem in the future.