[Correspondent Diary] China's Dilemma... Rapidly Increasing '1-Person Households'

China's 240 Million Single-Person Households Exceed UK, France, and Germany Combined
Declining Marriages, Rising Divorces, and Falling Birth Rates Raise Social Issues... Calls for Public Finance Intervention

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Single-person households are emerging as a new economic force in China.

Chinese media such as CCTV and Xinhua News Agency reported that the number of people living alone in China has reached 240 million, which is more than the combined populations of the United Kingdom, France, and Germany. Among them, Chinese media estimate that the number of economically active adults exceeds 100 million.

As the number of single-person households increases, the "one-person economy" has emerged as a new consumer force, leading to changes in consumption concepts and consumption patterns, Chinese media explained.

Xinhua News Agency reported that a wave of one-person trends is sweeping across all aspects of society, including one-person menus, one-person customized travel products, small home appliances for one person, pets, health, public telephone booth-style one-person karaoke rooms, and one-person apartments.

Xinhua News Agency diagnosed that the increase in single-person households in China is due to improvements in education and income levels. It also evaluated that single-person households play a virtuous cycle role in creating new businesses.

Professor Feng Jiao of the School of Economics and Management at Ningxia University said, "From the perspective of consumer behavior, single-person households tend to pursue convenience, individuality, quality, and enjoyment," adding, "It is necessary to analyze personalized consumption demands and develop customized strategies suitable for consumer groups."

However, concerns about the increase in single-person households in China are not few. A representative issue is the birth rate. As of the end of 2019, the number of newborns in China was 14.65 million, the lowest in 70 years.

Unlike the number of newborns, which has been decreasing every year since peaking at 17.86 million in 2016, the population aged 65 and over is rapidly increasing annually. The elderly population aged 65 and over, which was 106 million in 2009, increased by 54 million to 160 million in 2019 over ten years. If the current trend continues, it is estimated that the population aged 65 and over in China will approach 400 million by 2050.

The sharp decline in the birth rate is also related to the marriage rate. According to the China Marriage Report released by the Evergrande Research Institute in February, the number of marriages sharply decreased from 13.47 million in 2013 to 8.13 million last year.

On the other hand, the number of divorces surged from 580,000 in 1987 to 3.73 million last year.

Along with the decline in population, which is China's greatest growth engine, social problems are also being raised. Xinhua News Agency expressed concern about the social isolation of single-person households, noting that humans have social attributes and social needs. It pointed out that this could affect physical and mental health and cause social problems.

Xinhua News Agency added that public finances should be invested to build community platforms for China's single-person households and support their diverse social activities.