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23 January 2022
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China’s economy faces future threat from falling birth rates

China’s recent crackdown on private education and the attempt to slow the rise in housing prices aim to ease the burden on families….reports Asian Lite News

The birth rate in China is decreasing drastically with the government’s all efforts to boost it have been ineffective and experts have warned that it is leading to workforce shrinking, a long-term threat to the country’s economy, a media report said.

Experts have pointed out that China’s plan to become “a rich and powerful country” by 2049, the 100th anniversary of the founding of the People’s Republic of China, is imperilled. The International Monetary Fund has declared that China’s economy is “unbalanced and momentum is slowing,” and its shrinking workforce, declining productivity, the US-China trade war and its decoupling from the international economy are all long-term threats to growth, reported Japan Times.

The change in demographic structure is derived from the ruling of the communist government in the country. Most fundamentally, as China develops, its citizens have better lives and better health care, allowing them to live longer. Families, and women, in particular, are less inclined to have children. There are complaints about the costs of education — a big concern in a hypercompetitive child-rearing environment — and housing, the disproportionate burden born by women within the household, as well as fears that women lose opportunities for advancement when they take maternity leave, said the Japanese publication.

With regard to these issues, the Chinese government in 2016 had lifted the one Child policy. And in the last summer. they allowed families to have three children. But none of these efforts turned out to be effective as the birth rate has shown a continuous decline.

China’s recent crackdown on private education and the attempt to slow the rise in housing prices aim to ease the burden on families.

Experts have said that China is planning similar actions further in the same way as housing subsidies, more generous maternity leave policies, increases in child care centres and changes in income tax policies.

But experts have believed that China’s declining birth rate despite the government’s numerous efforts looks almost impossible to reverse, a trajectory with profound implications for its economic and social prospects, according to Japan Times. (ANI)

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