The beginning of China’s decline?

China’s population is set to age rapidly, resulting in several trends that can be characterised as a state of “decline” for China: Low potential growth, which is likely to be similar to that of the United States; Weak investment, as the return of regional value chains means that investment will take place to meet domestic demand; A decline in savings and the transition to external deficits and declining external assets, as the external deficit will not be offset by external borrowing due to the renminbi’s small international role. This will reduce China’s international role; Due to the decline in its population and the high level of its debt, a sharp rise in per capita debt, leading to financial fragility and further weakening growth .