Beijing "In the face of rapidly falling fertility, the Chinese authorities are investigating fresh methods to encourage citizens to have more children. 1 of the latest initiatives is the introduction of free kindergartens in selected cities specified as Shenzhen and Chengdu. However, this is only part of a broader strategy in which provinces offer cash bonuses, housing subsidies and even extended maternity leave. Is that adequate to reverse a disturbing trend?
Demographic Crisis: Why is China worried?
Since the abolition of one-child policy in 2016, the Chinese government has introduced further incentives to increase natural growth. However, in 2023 it was reported historically low birth rate – Only 6.39 births per 1000 peopleand the population of the country decreased second year in a row.
Experts inform that an ageing society can lead to:
- The labour marketplace crisis – less young workers mean problems for the economy.
- Retirement charges – More and more pensioners will depend on less and less workers.
- Economic slowdown – lower consumption and innovation.
Free kindergarten – is this a solution?
Urban authorities in Shenzhen and Chengdu started a pilot free kindergarten programme to reduce the cost of raising children. In any Beijing districts parents can besides number on additional discounts for extracurricular activities and wellness care.
– “Bringing up a kid in China is very expensive, especially in large cities. Free kindergarten is simply a large relief” “This is Li Na, the parent of a 4-year-old boy from Shenzhen.
However, this alone is not enough. Costs housing, education and medical care They're inactive a barrier.
Other local pronatalist initiatives
Provincial governments test various methods of encouraging children:
- Cash bonuses: W Hunan parents get up to 20 000 CNY (approx. 11,000 PLN) To another and another child.
- Housing subsidies: W Ningbo couples with 2 children may receive a mortgage surcharge.
- Extended parental leave: W Shanghai Fathers have the right to 30 days of paternity leave.
- Tax relief: In Guangdong families with children pay lower taxes.
Is this gonna work?
Experts are skeptical. – “Without deeper reforms specified as expanding housing availability or occupation stability, bonuses alone will not change the trend” – is judged by prof. Wang Feng of the University of California.
Meanwhile, young Chinese are increasingly choosing to live without children, complaining about high cost of living, force and imbalance between work and private life.
What's next?
If initiatives specified as free kindergartens fail, the government can search more extremist solutions – e.g. compulsory contributions to the pronatalist fund for companies (which is already being tested in any regions).
One thing is certain: China cannot afford a further fall in fertility. Whether you can reverse the trend – time will tell.
Source:
- Nikkei Asia – “China 1 of the most costly places to rise a child, eyes free preschool”
- South China Morning Post – “China’s population drops for second year”
- Reuters – “Chinese cities offer cash bonuses to engourage more babies”
- Bloomberg – “China’s Demographic Crisis Is Only Getting Worth”
Leszek B. Glass
Email: [email protected]
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