Written by Alex Ye
In recent years, China has experienced an economic slowdown, with growth rates decelerating compared to the rapid expansion of previous decades. In the second quarter of 2023, the world's second-largest economy grew by 4.7%, its slowest pace since the first quarter of 2023, according to official data. This economic deceleration has coincided with a demographic crisis, as the country’s population ages at an alarming rate. Despite the reversal of the long-standing “one-child policy” in 2016 and various government-led initiatives encouraging young couples to have more children, China recorded its lowest birth rate in 2023 since the founding of Communist China in 1949. More than 20% of China’s population is now elderly, with approximately 297 million people aged 60 and above by the end of last year. Demographers predict that by 2030–2035, this percentage will rise to 30%, and by the middle of the century, more than 40% of the population will be elderly, making China a “super-aged society.”
In response to this impending demographic shift, the Chinese government has announced a gradual increase in the statutory retirement age, set to begin in January 2025. Over the course of 15 years, the retirement age for men will be raised from 60 to 63, while for women, it will increase from 50 to 55 for blue-collar workers and from 55 to 58 for white-collar workers. This reform, which has been under consideration for about a decade, is part of China’s broader strategy to address the economic strain caused by an ageing population and the growing pension funding crisis.
The announcement of this reform sparked widespread discussion across Chinese social media, with reactions ranging from relief to discontent. Some users expressed optimism that the changes were not more drastic and appreciated the flexibility in retirement options. For instance, a comment on Weibo states: “As long as there are options to retire or not based on our will, I have no objections.” On the other hand, many voiced frustration at the prospect of working additional years and delayed access to their pensions. Concerns were also raised about the potential impact on China’s already competitive job market, where youth unemployment rates remain high. One widely shared comment lamented: “Delayed retirements just mean you can’t get your pension until you hit 63, but it doesn’t mean everyone will have a job until then!” These criticisms highlight the tension between policy changes aimed at addressing long-term economic challenges and the immediate concerns of individuals affected by those changes.
The government, however, has presented this reform as an urgent response to an outdated retirement system. Experts cited in state media emphasised that the current retirement policy, which was implemented in the 1950s, has remained unchanged for 73 years despite dramatic shifts in demographics, education levels, and life expectancy. Yuan Xin, a demographer, argued that the policy framework must evolve in response to the changes in China’s social and economic landscape since the country’s reform and opening in 1978.
In comparison to global norms, China’s current retirement age is relatively low. According to the Organization for Economic Co-operation and Development (OECD), the average retirement age in 2022 was 63.6 years for women and 64.4 years for men in member countries. Therefore, China’s planned adjustments, though controversial within the country, align its retirement age with international standards.
While the necessity of the retirement age reform is clear, questions have emerged regarding the legislative process behind it; Article 6 of China’s Constitution emphasises the importance of whole-process people’s democracy in lawmaking. This principle asserts that legislation should reflect the will of the people, promote socialist democracy, and ensure transparency by allowing public participation in the drafting of laws. Specifically, it mandates that laws significantly affecting public interests should undergo public scrutiny, with proposed legislation published in various media outlets for public comment before it is passed.
Some critics have argued that the retirement age reform did not fully adhere to these constitutional principles. Although public opinion was solicited through social media and other informal channels, there was no formal process of public hearings or consultations as required for major legislative changes. The Legislation Law, passed in 2000, stipulates that public hearings should be held for important legal reforms, but it does not clearly define the scope or legal consequences of such hearings. This lack of clarity has led to inconsistencies in how public participation is implemented, undermining the legitimacy of the legislative process.
Additionally, some legal scholars argue that public participation in lawmaking should be treated as a fundamental right, similar to judicial rights. In countries with more democratic legal systems, referendums are common tools for ensuring that significant legal reforms reflect the will of the people. In China, however, the absence of a more transparent and participatory process in the retirement age reform has raised concerns about whether the legislation truly reflects public will, as required by the Constitution.
In conclusion, China’s retirement age reform is a necessary response to the twin challenges of an ageing population and a slowing economy. While the government has framed the reform as a pragmatic solution to address the pension crisis and bring China’s retirement policies in line with global standards, the process has sparked widespread debate. The lack of formal public participation in the legislative process has drawn criticism, raising questions about the transparency and legitimacy of the reform. As China continues to evolve socially and economically, ensuring that legislative processes are reflective of public opinion will be crucial for maintaining social harmony and public trust in the government.
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