The biggest problem in China is the one-child policy. They will soon have a massively unbalanced population, with half of them over 50. India has more young people in its population.
Not to mention that the one child policy has created a self-absorbed, spoiled generation like none the world has ever seen. To put it in perspective a generation of people with the same demeanor as someone like Kim Jong-il in Korea.
Without years of one-child policy, china might have more than 2 billion people today with most of them low educated, it would not be a delighted perspective. china needs a better solution to restrict the growing of population, but the government did not find it.