Hong Kong (AP) Drawn by the throbbing rhythms of the African drum she plays in a classroom full of other retirees whose hands move in sync, Zhang Zhili, a retiree, takes an hour-long bus ride every Wednesday to an education center, where every beat uplifts her mood.
Zhang, 71, has discovered happiness and new acquaintances at Beijing’s senior university. The former elementary school teacher also takes social dance classes, paying roughly 2,000 yuan ($280) for two classes this semester, in addition to African drums. She feels more confident when she sees herself standing erect in dancing class. She spends time with her buddies after class.
What will we require as we age? “I said,” she said. to cherish oneself.
Many elderly Chinese people are searching outside of traditional nursing institutions due to concerns about quality and family abandonment. This is fueling a surge in senior-focused communities, home care services, and universities. Because they perceive potential in the expanding industry, some providers continue to operate even when they have difficulty making a profit.
The population of China is aging quickly. Approximately 297 million people, or more than one-fifth of the population, were 60 years of age or older last year. This figure is expected to rise to nearly 400 million by 2035, or more than 30% of all Chinese.
Hu Zuquan, a researcher at the State Information Center, a public institution connected to China’s main planning agency, told state media that this is driving growth in services and products targeted at older adults in what Beijing refers to as the silver economy, which is expected to grow from roughly 7 trillion yuan (about $982 billion) today to about 30 trillion yuan (about $4.2 trillion) in 2035, increasing its share of the economy from roughly 6% to roughly 10%.
According to Du Peng, dean of Beijing’s Renmin University’s school of population and health, the government is extending basic care services to all elderly individuals in need, departing from its custom of concentrating on those without family support. A list of essential care services, including as ability tests for those over 65 and care training subsidies for family members of people with disabilities, was put together by officials last year with the goal of making them available countrywide.
The majority of senior people in China choose to age at home with their family after they retire, usually between the ages of 50 and 60. This is one of the earliest retirement ages among the main economies of the world. Filial piety is deeply ingrained in Chinese culture. Many grandparents assist in caring for their grandkids, and unless there is a severe handicap, some people view nursing facilities as a form of abandonment.
Beijing released new rules in January that called for more apparel, food, and technology products designed for senior citizens, as well as an expansion of home care services and meal delivery services. Among them is enhancing their lives via education.
According to Du, home-based services reduce lodging expenses by providing a less expensive option to nursing homes. According to him, the majority of elderly Chinese people are in reasonably good health and may benefit more from rich cultural experiences than from disability care.
The 60-year-old Cai Guixia claimed that taking African drumming and modeling lessons has given her a sense of fulfillment. She would rather employ a domestic helper because she believes she would feel abandoned in a traditional nursing facility.
Meeting those needs presented financial opportunities for Liu Xiuqin, who owns two care facilities.
She opened a school in Beijing with an investment of around 800,000 yuan, or over $112,000 in total. Its 150 pupils, including Cai and Zhang, pay roughly 1,000 yuan ($140) per semester for sessions in modeling, yoga, dancing, and singing. Her staff plans events for pupils to socialize outside of the classroom.
Liu is ready to wait and anticipates breaking even in another year. Given that the generation born in the 1960s and after places a higher priority on health and quality of life than their parents did, she thinks the market will do well in the future.
Making rapid money isn’t the goal, she stated. It takes perseverance.
It is difficult for some silver economy firms to turn a profit.
Wu Tang co-founded a school in Guangzhou, a city in the south, last year after the decline in China’s real estate market negatively impacted his geotechnical investigation and surveying company. He still hasn’t paid for the classes his school offers to help people fulfill some of their childhood goals. Additionally, less expensive government-run courses compete with him.
Additionally, Cui Yang, who owns a care station in Beijing, employs zigzagging helpers to give haircuts at home for 30 yuan ($4.20); she also pays 50 yuan ($7) per hour to accompany patients to the hospital, among other services. Cui is losing money despite receiving free rent and other government incentives. “The business would fail without the subsidies,” she claimed.
Small operators are not the only ones who face difficulties.
In Chongqing, southwest China, Wu Wenjing is in charge of the home care division of a healthcare division of the state-owned financial behemoth China Everbright Group. According to her, it has been losing 1 million yuan (about $140,000) annually for 13 years in a row, despite spending 5 million yuan (around $702,000) annually.
Seventy employees of Wu’s company serve as psychotherapists, rehabilitation therapists, and caregivers who visit homes. Because working alone in customers’ homes can be challenging, the industry is competitive and has a high turnover rate. Wu is thrilled with the government’s efforts to expand the silver economy and aims to break even in five years.
She declared that the senior care industry in China had finally entered its spring.
Numerous businesses are vying for a piece of this government-supported market. Insurance firms like Taikang Insurance Group and real estate developers like Vanke Co. and Sino-Ocean Group have constructed upscale senior living complexes with features including dining options, mahjong rooms, and movie screenings.
China is also addressing the issue of dementia by offering cognitive screening tests and educating social workers and memory clinic employees. Numerous Chinese biotechnology and pharmaceutical firms are developing medications to treat dementia, including Alzheimer’s disease.
Meanwhile, some abandoned kindergartens and schools that were left over from the nation’s dropping birthrate are being converted into senior care centers.
Official data revealed that the nation had 410,000 care facilities by June, double the number in 2019, demonstrating the success of government initiatives to support the silver economy.
However, there are still concerns over many older Chinese people’s purchasing power.
The median yearly income of older persons was 11,400 yuan ($1,574), according to a 2021 national survey that was co-conducted by China’s Civil Affairs Ministry. It was less than half of that in rural areas. According to Beijing University polls, over 10% of senior Chinese are poor, and living conditions are significantly worse in rural and western China.
Gary Ng, a senior economist at Natixis Corporate and Investment Banking, stated that China’s silver economy is still in its early stages.
“It takes time to build industries producing senior-focused products and people trained to provide such services,” he said, adding that many older Chinese must set aside funds for medical and other bills if they lack enough insurance to cover them. He suggested that efforts in developing a trained workforce and tax incentives would be beneficial.
He stated that while there are opportunities here, it appears that much work remains to be done.
___
This report was produced in Beijing by video producers Caroline Chen and Wayne Zhang, and by Associated Press researcher Yu Bing.
The Associated Press, 2024. All rights reserved. All rights reserved. It is prohibited to publish, broadcast, rewrite, or redistribute this content without authorization.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!