In this WhoWhatWhy podcast, I talk with China expert Dinny McMahon who explains how Beijing is desperately racing to innovate its way out of demographic disaster — replacing construction-led growth with advanced manufacturing and automation. But as the collapsing property market exposes mountains of municipal debt, and rising global trade barriers threaten China’s export-driven strategy, the sustainability of this economic pivot hangs in the balance.

As factories across China operate in darkness — not because they’ve failed but because they’re so automated they need no human presence — a profound contradiction emerges: a nation that produces one-third of the world’s goods while consuming only 12 percent of them, simultaneously dominating global manufacturing while its aging population hurtles toward catastrophic decline.

According to UN estimates, China’s population could literally halve by the end of this century, creating a society where retirees will soon outnumber workers.