China Approves a Three-Child Policy With Stipulations to Encourage Couples to Have More Children

 

China’s recent census found that the country’s demographic crisis is projected to worsen as its population ages.

Beijing:

China’s national legislature formally accepted the governing Communist Party’s proposed three-child policy on Friday, signaling a major policy shift aimed at preventing a sharp drop in birth rates in the world’s most populous country.

The Standing Committee of the National People’s Congress approved the updated Population and Family Planning Law, which permits Chinese couples to have three children (NPC).

In an apparent attempt to address Chinese couples’ reluctance to have more children due to rising costs, the modified law has established additional social and economic support measures to address the concerns.

China’s national legislature formally accepted the governing Communist Party’s proposed three-child policy on Friday, signaling a major policy shift aimed at preventing a sharp drop in birth rates in the world’s most populous country.

The Standing Committee of the National People’s Congress approved the updated Population and Family Planning Law, which permits Chinese couples to have three children (NPC).

In an apparent attempt to address Chinese couples’ reluctance to have more children due to rising costs, the modified law has established additional social and economic support measures to address the concerns.

The Chinese Communist Party (CPC) authorized a relaxation of its rigorous two-child policy in May of this year, allowing all couples to have up to three children.

China abolished the severe decades-old one-child policy in 2016, allowing all couples to have two children, which planners blame for the country’s demographic crisis.

Officials in China claim that the one-child policy, which has been in place for almost three decades, has avoided nearly 400 million births.
The decision to allow the third child comes as China’s population rose at the slowest rate in a decade to 1.412 billion people this month, despite official projections that the decline might start as early as next year.

According to new census data, China’s demographic crisis is anticipated to worsen, as the population of persons aged 60 and older increased by 18.7% last year to 264 million.

As calls for the government to end family planning restrictions grew louder, the CPC decided to allow a third child while declining to completely repeal the policy, citing concerns that the country’s declining population could lead to severe labor shortages and negatively impact the world’s second-largest economy.

“Data reveal that China’s population is aging even more rapidly, and we will continue to face pressure to achieve a long-term balanced population development,” Ning Jizhe, the head of the National Bureau of Statistics (NBS), stated on May 11 when publishing the census results.

The two-child policy failed to entice couples to have a second child, since fewer couples chose to have a second child due to high child-rearing costs.

As a result of the unsatisfactory response, Liang Jianzhang, a professor at Peking University’s School of Economics, has proposed that the government reward parents one million yuan (USD 156,000) for each newborn child in order to boost the country’s decreasing birth rate.

The three-child policy, according to Dan Wang, chief economist at Hang Seng Bank (China), would have a favorable impact on China’s birth rate, although not as much as the authorities intended.

“High housing and education costs, as well as a lack of employment protection for women, are significant economic barriers to having children,” she said, adding that the cost of having a third child would be too expensive for most middle-class couples.

The diminishing tendency has led Chinese demographers to forecast that India’s population will overtake China’s population before the UN’s projected 2027 deadline, putting India in the lead as the world’s most populous country.

According to a UN assessment released in 2019, India is predicted to surpass China as the world’s most populous country around 2027, adding nearly 273 million people between now and 2050 and remaining the most populated country through the end of the current century.

According to the UN research, India’s population was 1.37 billion in 2019, while China’s was 1.43 billion, and India’s population is expected to overtake China’s by 2027.

According to Lu Jiehua, a sociology professor at Peking University, China’s population may peak in 2027 before starting to drop. According to some demographers, the peak might occur as early as 2022.

China is also at risk of falling into the low-fertility trap, with 12 million births recorded in 2020, a reduction for the fourth year in a row.

The overall fertility rate of women of reproductive age in China was 1.3, which is a low figure.
According to a research released this year by China’s central bank, the People’s Bank of China (PBOC), China’s demographics are poised to shift as its population growth enters negative territory after 2025, resulting in a consumer demand shortage.

“There will be a demand deficit when the entire population grows at a negative rate [after 2025]. We must consider the impact of demographics on future spending patterns “Cai Fang, a member of the PBOC’s monetary policy committee, agreed.

According to the PBOC report, China must liberalize its birth restrictions immediately or face a situation in which it will have a lower percentage of employees and a heavier burden of senior care than the United States by 2050.

It stated that the country should not interfere with people’s ability to have children, otherwise the economic impact of a shrinking population will be irreversible.

China likewise wants to raise the retirement age in a progressive, flexible, and differentiated way.

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