China's situation is unusual because their population decline will be precipitous. Already today there are many more men than women in some regions. COVID is likely to kill between 2 and 3 million people, mostly elders but probably around 25% of working adults, and urban Chinese are no longer interested in having children.
Ok
What are the consequences to expect?
China needs to get off its high horse always thinking it's the center of the universe and realize that it's just like any other country in the world, unique and important but not important enough that the world is going to collapse without it.
Full employment and higher pay. China's export directed economy will need to automate its manufacturing sector and let the machines do the work that today is done by thousands of low paid labor. China is unlikely to let in foreigners the way western nations have to compensate for their labor shortage.
The Taiwan situation is time sensitive. China cannot have a million men military when there are not enough to plow the fields or work in offices. Xi is under pressure to trigger this war before the military shrinks for lack of men and due to tighter budgets. But a war means a further population shrinkage of able men and women and its outcome is uncertain. The economy minded apparatchiks may exert enough pressure to do away with Xi and his hawkish cohort in exchange for a conciliatory western response to the 1 China policy.
A smaller China doesn't necessarily mean a weaker China. Their work ethic, competitive spirit and scientific prowess will continue to challenge western hegemony.
Nah that's ok. China will be fine. The all-mighty Xi will think of something. People of China are used to waiting. That's why they live so long.

