What I Learned This Week

The second wave of automation in China is arriving. Will AI reshape China’s service sector?

From the early-1980s until early this decade, the “demographic dividend” provided by an abundant pool of labor helped drive China’s rapid industrialization and urbanization. The demographic dividend contributed roughly one-quarter of China’s economic growth in the past, according to the estimates cited by the Xinhua news agency. Given that China’s labor force peaked shortly after 2010, the country will need major new technological advancements to raise productivity-per-capita, otherwise the demographic dividend will become a headwind for economic growth. The scale and speed of China’s aging are unprecedented in human history, as we have often written. It took China only 38 years to see its…

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