> What should China do if that is indeed the case? They can’t continue being the world’s factory if they only have 1-3 kids per family. If we're going the high

> What should China do if that is indeed the case? They can’t continue being the world’s factory if they only have 1-3 kids per family. If we're going the high population route: start accepting massive numbers of skilled immigrants in sectors with labor shortages. Or raise the financial incentives to have kids. The latter is already being done in China and in many other countries (Japan, SK, Eastern Europe, etc.) to little effect, so what it would take would be something like $200k tax free for your first child, $150k tax free for your second, $100k for your third, and nothing for your fourth child and above. And phase out the incentives if a baby boom actually happens to avoid inflation. If we're going the low population route: invest more in automation (already being done), education (already being done), and worker productivity (also already being done).