China and South Korea Collaborate on Silver Economy Amidst Ageing Societies

China and South Korea are increasingly focusing on their shared challenge of rapidly ageing societies, a significant issue that has emerged in their bilateral discussions. Both nations are grappling with low birth rates, which have profound implications for their economies and social structures. Recent meetings between Chinese President Xi Jinping and South Korean President Lee Jae Myung have highlighted this concern, with both leaders emphasizing the need for cooperative strategies to address the economic changes resulting from demographic shifts.

South China Morning Post

In November, during a bilateral summit at the Asia-Pacific Economic Cooperation (APEC) meeting, China and South Korea formalized their commitment to addressing these demographic challenges by signing a cooperation agreement focused on the "silver economy." This term refers to existing and emerging sectors that cater to the elderly population. President Xi underscored the importance of achieving mutually beneficial outcomes through this collaboration. During his state visit to China in January, President Lee identified the silver economy as an area ripe for "limitless collaboration opportunities," despite the competitive nature of their relationship in other high-tech industries.

South China Morning Post

Analysts view the silver economy as a promising avenue for cooperation between China and South Korea. Xu Tianchen, a senior economist at the Economist Intelligence Unit, noted that this sector is "one of the least sensitive areas of cooperation" in their bilateral relations. Furthermore, he emphasized that it represents a "100 percent growing market" in both countries, suggesting significant potential for economic collaboration even amidst geopolitical tensions.

South China Morning Post

While the focus on the silver economy has garnered support, some critics argue that the underlying competitive dynamics between China and South Korea in other sectors could complicate this collaboration. Concerns have been raised about whether the two nations can effectively balance their competitive interests with the need for cooperation in addressing demographic challenges.

South China Morning Post

Both governments have expressed optimism regarding their partnership in the silver economy. President Xi highlighted the necessity of cooperation in light of their ageing populations, while President Lee reiterated the potential for collaboration in sectors catering to the elderly.

South China Morning Post

As both nations continue to navigate their demographic challenges, further discussions and initiatives are expected to emerge from this cooperation. The focus on the silver economy may lead to new policies and investments aimed at enhancing the quality of life for their ageing populations, potentially setting a precedent for future collaborative efforts in other sectors.

South China Morning Post

• “limitless collaboration opportunities” — President Lee Jae Myung, South Korean President

South China Morning Post

• “First, it’s definitely one of the least sensitive areas of cooperation in China-Korea relations, and second, it’s a 100 per cent growing market in both countries,” — Xu Tianchen, Senior Economist, Economist Intelligence Unit

South China Morning Post