FT News Briefing China's birth rate tumbles to historic low
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Jan 20, 2026 
Kana Inagaki, FT industry editor focusing on electric vehicles, and Mary McDougall, pensions correspondent, delve into China's alarming birth rate, now at a historic low, and its economic impacts. Kana discusses why the UK is becoming a prime destination for Chinese EV brands like NIO and BYD, highlighting tariff advantages and competitive pricing. Mary outlines Europe’s pension challenges due to an aging population, weighing policy options for sustainability amidst budget constraints and public pushback.
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China's Demographic Decline Threatens Growth
- China's birth rate hit a record low and policy attempts to boost births are having little effect.
- Demographers warn the decline will worsen and could slow China's long-term economic growth.
Exports Mask Domestic Weakness
- Despite demographic headwinds, China's GDP grew 5% in 2025 driven by strong exports.
- Exports offset a weak domestic outlook, showing growth can mask structural population risks.
Saudi Banks' Record Borrowing Spree
- Saudi banks borrowed internationally at their fastest pace in 2025 to finance Vision 2030 megaprojects.
- Local funds couldn't meet demand, pushing lenders to seek foreign financing for projects like Neom and The Line.