"China’s demography is a disaster. About 2015, the seemingly boundless labor pool will begin to shrink. One reason is rapid aging, which presages that China will become old before it becomes rich. By 2050, China will have lost one-third of its working-age population. Meanwhile, the U.S. will bestride the earth as the youngest industrialized nation after India."
It's very hard to affect demographics to produce more babies after demographic transition is complete. Or are you talking about investing in education?
The main question is: can China's population become specialize faster than it ages? My intuition says it will, and even if the "boundless labor pool" is drained, it will still have ~20% of the world's work force. By then probably higher skilled than now.
