China seeks to become the world’s first economy in terms of GDP in Corrintes. For this, the “Asian giant” needs such a large number of factors of production (work, capital and land). Currently, China is faced with two problems. One of them is a slowdown of performance (which requires better investment in capital and technology), while the other is a decrease in its population and aging, which threatens to significantly reduce the working coefficient. Therefore, Beijing left a restrictive policy regarding birth To prepare a plan to stimulate birth, which seems to go down the slopeThe field according to the UN, China may lose hundreds of millions of inhabitants in the coming years if it cannot turn the demographic trends that dominate the country at present. Although this plan is still small, it is an important change in the mentality, according to experts.
To avoid this situation, China plans to offer financial assistance to families as an incentive In order for couples to have children how they revealed Bloomberg, familiar with this issue, because after many years of decline in the population, the economy begins to obviously resent this aspect. Less children, as a rule, synonymous with lower innovations and lower costs, therefore less growth.
Thus, the government will provide 3,600 yuan ($ 503) per year for each child until it is three years old, within the framework of the national initiative that will begin in 2025, people who asked not to be identified, since the details are not public.
Although China abandoned its only children’s policy about ten years ago, its population registered a decrease in three consistent years until 2024. Last year, 9.54 million births were only half of 18.8 million registered in 2016, when China raised a policy that allowed pairs to have a single son.
A decrease in the birth rate is a problem for the second largest economy in the world where the population of labor age was reduced, which poses a threat to labor supply and productivity. China, which lost its title as the most populated nation against India in 2023, could see Its population is additionally reduced, to 1.3 billion by 2050 and below 800 million for 2100, According to the UN demographic model.
This prospect follows from an alarming fall in the level of marriage, which has reached its lowest level in almost half a century and can cause even fewer births. This alarming trend has already contributed to many local authorities in the implementation of measures, from the proposal of economic incentives for housing subsidies to help remove the financial burden of families and encourage birth.
In some cases, local subsidies can be quite generous. Hohhot, the regional capital of inner Mongolia, in March, nationalized headlines for their 50,000 yuan for couples with a second child and 100,000 yuan for a third or more were monopolized. Although many local authorities have proposed these subsidies, They are mainly aimed at families with the second or third childFor example, last year, the eastern Chinese city of Hefay declared 2000 Yuan’s subsidies for the second child and 5,000 yuan for the third.
According to Huatai Securities Co., in a research note published in his WeChat account on Friday, is a necessary incentive. In most regions, children’s subsidies do not cover the first child and, therefore, are insufficient to improve overall birth rate, he added.
The Prime Minister of China Lee Tsyan promised to provide subsidies to care for children in his annual report on the work of the Government in March, without providing more detailed information. Michelle Lam, an economist of Great China in the socialist Geral, estimated that national subsidies will be about 0.1% of the country’s gross domestic product (GDP). This figure is “small, but indicates a change in the mentality and paves the way for a greater incentive,” he said. “This is a step in the right direction.”
