Raising children in China ranks among the priciest options globally.
In a bid to combat a demographic crisis and boost the birth rate, the Chinese government is urged to implement a series of policies aimed at lowering child-rearing costs and promoting a more favourable environment for childbirth and family life.
According to a recent report, the average woman in China loses approximately 12-17% of her income by having a child, with the high costs of childcare being a significant factor. This equates to an average loss of 63,000 yuan ($8,700) in income for a woman working 2,106 fewer hours during childcare for a child aged 0-4, based on an hourly wage of 30 yuan.
One of the key measures proposed in the report is the provision of cash subsidies to families. Starting in 2025, China plans to give 3,600 yuan (about $503) annually per child until age three. This direct financial support aims to ease the burden of early child-rearing costs.
Another priority is enhancing the childbirth experience. A mandate requires hospitals with more than 500 beds to provide epidural anesthesia by the end of 2025, with the aim of making childbirth less painful and more appealing, thus encouraging births. This measure is set to be expanded to smaller hospitals by 2027.
The report also emphasises the need to expand access to fertility treatments. Policies have introduced public medical insurance coverage for fertility services like in vitro fertilization (IVF), along with regional subsidies to address financial barriers couples face in seeking assisted reproductive technologies.
Promoting male participation in childcare is another crucial aspect of the proposed policies. Encouraging shared childcare responsibilities may help reverse declining birth rates, as research suggests subsidising men's involvement in childcare and household chores could significantly raise fertility rates.
The report also suggests that granting single women the same reproductive rights as married women could help increase the birth rate. Gender discrimination remains widespread in China, and addressing this issue is essential for creating a more equitable and supportive environment for families.
Financial and tax subsidies for mothers are among the top priorities to boost the birth rate, according to the report. The expansion of childcare services is also a top priority, as the current social environment does not favour female fertility.
Unfortunately, the report does not provide details on the specific policies that the Chinese government has implemented or plans to implement in response to its recommendations. However, it is clear that a comprehensive approach is needed to tackle the complex issues contributing to China's declining birth rate.
The number of new births in China in 2023 was 9.02 million, marking a continued decline from the 2016 figure of 18.5 million new births. The birth rate in China in 2023 reached a record low of 6.39 births per 1,000 people, down from 12.42 in 2000.
As China navigates this demographic challenge, the implementation of these proposed policies could potentially increase the number of new births by 3 million per year, according to the report. By addressing the financial, social, and cultural factors contributing to the decline in birth rates, China can work towards a more balanced and sustainable population growth.
- The high costs of childcare in China, which lead to an average woman losing 12-17% of her income, are a significant factor requiring attention.
- To ease the burden of early child-rearing costs, China plans to provide annual cash subsidies of 3,600 yuan per child until age three, starting in 2025.
- Expanding access to fertility treatments, such as public medical insurance coverage for services like in vitro fertilization (IVF), is another important measure aimed at addressing financial barriers couples face in seeking assisted reproductive technologies.
- Promoting male participation in childcare and granting single women the same reproductive rights as married women are crucial aspects of the proposed policies, as they could potentially reverse declining birth rates and create a more equitable and supportive environment for families.
