China faces a second consecutive annual population decline, with 2.75 million fewer people in 2023 due to a sharp drop in births and COVID-19 fatalities post-lockdown. This exacerbates economic challenges, stemming from a prolonged decline in birth rates, rising unemployment, falling wages, and a property sector crisis. With youth unemployment at record highs, China's growth prospects dim, prompting concerns about a shrinking workforce and consumer base, while elderly care costs strain local governments. As India surpasses China in population, geopolitical tensions heighten, leading to debates about relocating supply chains.