China will have the biggest aging crisis that the world has ever seen over the next generation, and this happens at a time when Chinese ambitions, geopolitically speaking, are expanding.

The reason the United States is not aging rapidly in terms of its demographics is because we accept people as newcomers to this society in numbers that far surpass any of our major peers or rivals.

China has its own Baby Boom generation. And China's baby boom generation, because of the size of China itself, is the world's largest baby boom generation.

China will have the biggest aging crisis that the world has ever seen over the next generation, and this happens at a time when Chinese ambitions, geopolitically speaking, are expanding.

Since the first Gulf War in 1991, the Chinese have been increasing their military budget roughly by 11 percent a year on average. There's no way that China will be able to sustain that sort of military expenditure. And then the most important reason is because of its population changes.

Baby boom generation in China will start to hit retirement age in the very next few years, let's say by the end of this decade.

Soon numbers of Chinese people will exit the work force, and the Chinese work force, which has already begun to shrink, will shrink in a vastly accelerated way. And so China's going to face huge retirement costs and Social Security costs, health care costs, related to this immense aging of the population.