mk Central China's Henan Province. Photo: VCG" src="https://www.globaltimes.cn/Portals/0/attachment/2024/2024-08-04/32f9d460-a2c3-4cc2-aad7-abe37c7c1129.jpeg" />

A retired man interacts with an AI robot under the guidance of an assistant in Zhengzhou, Central China's Henan Province. Photo: VCG

China's elderly care sector is ushering in an era of accelerated development  empowered by artificial intelligence (AI) innovations, with a variety of "AI + elderly care" solutions such as nursing robots, smartphones for seniors and other assisting digital technologies being increasingly adopted to provide better services at affordable prices for seniors.

China's aging population now represents a growing challenge, and government officials at all levels are making policy adjustments and adopting accommodative measures to deal with a constantly changing demographic structure. 

The Third Plenum of the 20th Communist Party of China Central Committee held in July vowed to ramp up efforts to refine the policies and mechanisms for developing elderly care programs and related industries, which is expected to create new opportunities for domestic and foreign enterprises, analysts said.

Developing the silver economy plays an important role in the country's active response to the aging population, expanding domestic demand and achieving high-quality development. Analysts predict that the number of people aged 60 and above will reach 500 million by 2050, which will unleash vast potential for a wide array of emerging industries and services.

Innovative services

During the World Artificial Intelligence Conference held in Shanghai in July, Shanghai-based Dataa Robotics unveiled its advanced humanoid robot - the XR4. The 5.5-foot, 75-kilogram robot can handle delicate tasks like baking bread, becoming a highlight at the event. 

"The application of AI in the field of elderly care is a long-term development process. The XR4 is a 'robot nanny' that is suitable for elderly care," Wang Bin, vice president of Dataa, told the Global Times. 

Wang said the company's robots have been deployed in a number of nursing homes in cities including Chengdu, Southwest China's Sichuan Province, Nanjing, East China's Jiangsu Province, and Wuhan in Central China's Hubei Province.

No matter it is long-distance inquiry or guardian service or call service, Dataa robots provided outstanding performance, Wang said, noting that the combination of new technology and elderly care service could offer a new window for the development of the elderly care sector in China. With a rapidly aging population, there is a burgeoning demand in China for innovative and comprehensive elderly care services.

Recently, Shanghai launched a comprehensive action plan to revolutionize elderly care services in the city, aiming to harness cutting-edge technology to enhance the quality of life for seniors and emerge as a global leader in technological innovation and industrial advancement in elderly care by 2027.

Specifically, the plan highlights the integration of AI, calling for the development of AI models and algorithms for voice, facial, emotion and motion recognition and environmental perception.

"The overall development of the silver economy in China remains in its infancy. The silver economy involves all industries, and the scale, structure and quality of eldercare products and services must be transformed and improved to be suitable for the aged," Yuan Xin, deputy head of the China Population Association and a demographist from Nankai University in North China's Tianjin, told the Global Times.

The integrated development of AI in eldercare industry will bridge the digital divide for the elderly, Yuan said.

According to a report released by the China Research Center on Aging, the country's elderly care services have growing market demand, involving healthcare management, technology aid for the elderly, and financial support for the industry.

Market potential

"The development of silver economy has become an important task for China to actively deal with the aging population problem, expand domestic demand, and strive for high-quality development," Yuan said.

Yuan projected that people aged 60 and above in China will likely reach 520 million by 2050, accounting for over 40 percent of the country's population. He called for a scientific decision-making process based on real demographic structural changes, when formulating new policies.

In January, the State Council, the country's cabinet, published a document on the development of the silver economy - the first use of the term in the central government document - as the country aims to unlock rapid development of potential in the silver economy, will draw investment from foreign enterprises.

It said that efforts should also focus on nurturing new business models to govern smart health and elderly care, as exemplified by the development of nursing and housekeeping robots, along with biotech solutions that help alleviate age-related illnesses. Meanwhile, financial institutions are encouraged to launch more products to aid the elderly.

"Due to drastic demographic changes, it is urgent and strategically important for China to actively promote the development of the silver economy," said Zhou Maohua, an economist from China Everbright Bank.

Zhou said there are shortages in the supply of high-quality elderly care services, and filling up for the shortages will help improve the well-being and unlocking vast domestic market potential. As a result, developing the silver economy will help accelerate China's economic recovery and the economy's long-term sustainable development.

According to a study report provided by market consultancy iiMedia Research to the Global Times, China's elderly care market grew by 16.5 percent to reach 12 trillion yuan in 2023, and could reach 13.9 trillion yuan in 2024 and more than 20 trillion yuan by 2027.

With China's silver economy is becoming increasingly digital and intelligent, a growing number of foreign enterprises have recently increased their investment in the sector. For example, Chinese pension insurer Guomin Pension & Insurance Co announced in June that German investment firm Allianz Global Investors GmbH will become a strategic investor in Guomin, pending approval by the National Financial Regulatory Administration.

"Allianz Global Investors is committed to the growth in China, we are dedicated to exploring suitable business opportunities and partnerships in this important market," the company told the Global Times in an interview.