China’s ‘silver economy’ pivotal to puzzling out population pyramid paradox

China faces a demographic challenge due to its aging population, resulting in a conflict between consumer demand and demographic structure. Economists and demographers call for immediate government action to address this issue. The silver economy, focused on improving elderly welfare and meeting their needs, is seen as a key strategy to overcome the population pyramid paradox. To stimulate senior purchasing power and unlock the potential of the silver economy, the government should increase income levels and enhance social welfare through economic and social policy reforms. Additionally, supportive measures for elderly individuals and age-related industries, such as financial subsidies and policy incentives, are needed to shorten the formation of capacity, industrial chains, and supply chains. The government should also adopt a more forward-looking approach to industrial policies pertaining to the silver economy, steering technological innovation towards addressing current and future needs related to aging. However, China's efforts are still hindered by a record-low birth rate, which could further exacerbate the issue.