China’s Demographic Transition: Insights for MNEs Dealing with Aging Workforces

China’s population is aging rapidly and declining by about a million people each year. This has left multinational enterprises (MNEs) facing a rapidly aging and shrinking labor force simultaneously as their consumer base is contracting. In this paper, we review recent policy responses to these trends and offer guidance for MNE managers on how to manage effectively in an aging environment by creating senior‑friendly workplaces, tapping into the expanding silver economy, enhancing productivity by integrating emerging technologies, and diversifying supply chains by moving labor intensive production to younger countries. We also highlight examples of MNEs already putting these strategies into practice.