Since most of the working people in 20 years will not have any sibling they need to support their parents alone. Unlike western countries where the government, insurance companies and the different pension funds guarantee the support of older people, in most Asian countries it is the children's duty to provide their parents a good life. The government's role in this aspect is very limited. It is also unlikely that this tradition will change dramatically in the nearest future. If China can improve productivity rapidly in the upcoming years it will make the situation easier otherwise it will be a quite serious problem both from the aggregated and individual level.
Many people are worried about that today's children are more spoiled than ever.
That they are treated as small princes and princesses is not an exaggeration but rather a fact. I believe that it is a problem can not be ignored because a well-functioning society is result of groupwork rather than a number of individual performances. Since now each couple is only allowed to have one child, it is not surprised that parents want their children to be the best. But in practice it is impossible that everyone could be the best, especially in a country with a very hard competition as China. Children often have much pressure of being successful and do not allow themselves to fail.