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New data released by China's National Bureau of Statistics shows the nation was home to 1.4118 billion people in 2022, which is 850,000 fewer than the figure for 2021. This was the first time that China’s population has declined since 1961.

According to GlobalData, the population decline will impact the Chinese economy in the coming years and give the US an edge in its geopolitical competition with China.

In its new report, “Demographics – Thematic Intelligence”, GlobalData says China will accelerate the rollout of fertility incentives at the province level in the coming years. For example, Shenzhen is developing a subsidy for families who give birth to their first child and register the birth in the city. However, these initiatives will likely come too late for China to avoid an aging population.

The factors in China’s population decline, according to the report, include the Zero-COVID-19 and the 9-9-6 (working from 9am to 9pm, 6 days) a week which have stifled the impact of other policies designed to increase birth rate.

“China’s youth is overworked, economically constrained, and thus less interested in having children,” according to GlobalData. “The US has a much more favourable demographic outlook, partially due to its historic embrace of immigration.