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why China needs more babies, visually explained

by The Novum Times
22 June 2023
in Asia Pacific
Reading Time: 7 mins read
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China’s population since 1949

Evolution of the populationfigures since 1949

China’s population shrinks

China recorded its first population drop in six decades in 2022,
and in 2023, it is reported to have lost the title of “world’s
most populous country” to India. By 2050, China’s population is
expected to fall to around 1.32 billion, while India’s will have
hit 1.67 billion, according to the United Nations. Since the
1990s, China’s fertility rate (total number of children that would
be born to each woman) has fallen below the replacement level of
2.1. This means that there are not enough births to replace the
deaths in the population. A major reason for low fertility is the
legacy of China’s one-child policy. High child-rearing costs,
shifting ideologies on family and marriages, as well as the
slowing economic growth have all been blamed for the population
decline.

One-child policy

China’s one-child policy was rolled out in 1980 by Deng Xiaoping
and was strictly enforced after the population had increased to
987 million that year from around 550 million in 1949. It
restricted most couples to only a single child, and for years
authorities argued it was a key factor in supporting the country’s
economic boom.

But the policy led to sex-selective abortions or infanticide
targeting girls, because of a centuries-old social preference for
boys. According to recent census data, China has almost 35 million
more males than females.

In recent years, encouraging couples to have more children has
been high on Beijing’s agenda. In 2016, China ended its one-child
policy and allowed all couples to have two children. In 2021,
China further relaxed its family-planning policies and allowed
couples to have three children.

China’s population distribution by age in 2022 (%)

Fertility rate across countries (%)

Raising children

A high cost of living and gruelling work hours have been cited as
reasons for young Chinese thinking twice about having any
children, let alone more than one. Chinese research found that in
2019, it cost 485,000 yuan (US$67,803) to raise a first child from
birth to 17 years old in China, which was nearly seven times the
per capita GDP that year. The expenses were even higher in China’s
big cities, with Shanghai exceeding 1 million yuan and Beijing
reaching 969,000 yuan. The two cities also had birth rates that
were lower than the national level.

Left-behind kids

It is not uncommon in China for working-age adults to
leave their rural homes and children to seek work in
cities. Often in these circumstances grandparents become
primary caregivers. It was estimated that the number of
so-called “left-behind children” in rural areas was about
7 million in 2018, about 90 per cent of them cared for by
grandparents, whose average age was 59.

Role of grandparents

A 2017 study of about 3,600 households in six major
cities, including Beijing and Guangzhou, found almost 80
per cent had at least one grandparent acting as a
caregiver before children began primary school.

Nursery care

Children in China are only eligible for kindergarten after
turning three. The share of “inexpensive” public
kindergartners in China dropped from 77 per cent of the
total in 1997 to 38.4 per cent in 2019, according to
Ministry of Education data.

Childcare for children under three is another problem,
especially in rural areas, due to an undersupply of
nurseries. According to the education ministry, only about
4.71 per cent of children admitted to nurseries in 2019
were under three, well below the 32 per cent average among
countries in the Organisation for Economic Cooperation and
Development.

Challenges for women

The traditional domestic division of labour expects
Chinese women to shoulder more, if not most child-rearing
responsibilities. For women who were stay-at-home mothers,
re-entering the workforce can be challenging, with age and
perceived skill gaps being hurdles. Women who do have
children while working can face career challenges. Some
could have their promotion opportunities deferred, and
others see their career aspirations upended.

Average cost of raising a child from 0 to 17 years old (US$)

China’s ageing population

China has one of the fastest ageing populations in the world, with
the proportion of people over 60 years old projected to reach 28
per cent by 2040, according to the World Health Organization. This
is expected to weigh on the world’s second-largest economy in the
coming decades, while placing pressure on China’s health and
social security system.

Age distribution by country (%)

Asia and Oceania

Africa

Chinese officials and demographers have called for a return to
traditional Chinese family values to tackle a looming demographic
crisis.

Age distribution in China (%)

Age dependency ratio

The old-age dependency ratio is a measurement that compares the
number of people aged 65 and above with those of working age –
between 16 and 59 years old.

According to the Seventh National Chinese Population Census, the
age dependency ratio in China increased to 46.3 per cent in 2021.
It means that for every 100 people of working age, more than 46
elderly people and children had to be supported. When only looking
at elderly data, the dependency ratio was 20.8 per cent. This was
expected to exceed 50 per cent by 2050, according to a 2023 report
by Chinese economist Ren Zeping.

The UN has forecast that the total dependency ratio could exceed
75 per cent by 2055 – much higher than the estimated global
average.


China’s demographic dividend

China’s workforce continues to fall by millions each year,
chipping away at the nation’s “demographic dividend” – a term that
refers to economic growth resulting from the age structure of a
nation’s population.

China’s working-age population – those between 16 and 59 years old
– stood at 875.56 million at the end of 2022, representing 62 per
cent of the population, but this was down from 62.5 per cent a
year earlier.

Amid growing market concerns about a shift of demographic dividend
to India – now reported to be the world’s most populous country –
Chinese officials have sought to play up China’s strengthening
“talent dividend”. There are challenges due to a mismatch between
the talent being cultivated and what the market needs.

China’s labour force (millions)

China net migration

Since 1950, China has had a net negative number of migrants,
meaning more people leave the country than arrive. According to
the World Bank, there was an estimated net out-migration of
311,380 people in 2022, up from 200,194 in 2021, and 33,640 at the
start of the Covid-19 pandemic in 2020 when many international
borders were closed. Today’s figures are much lower than 1990-93
when over 750,000 of China’s citizens moved abroad each of those
years.

What are China’s solutions?

Three-child policy

To deal with the challenges of an ageing population, Beijing in
2021 announced that couples can have up to three children. The
policy shift followed a major change in 2016, when Beijing ended
the decades-old one-child policy, allowing couples to have two
children.

Cash incentives

Many local governments have issued cash incentives and other
preferential policies. Couples in Shenzhen who have a third child
will be eligible for a cash allowance of 19,000 yuan (US$2,800)
until the child turns three years old. Jinan, a city in Shandong
province, is offering childcare subsidies and increasing parental
leave. In July 2021, Panzhihua in Sichuan province became the
first city in China to offer subsidies to help families raise more
children – a monthly allowance of 500 yuan per second or third
child up to the age of three.

Shenzhen’s Maternity Benefits

Cutting marriage red tape

Many of China’s migrant workers will no longer have to travel back
to their hometowns to get married under new rules. In 2023, the
State Council, China’s cabinet, approved a regulation allowing
people from 21 provinces and municipalities – mostly in eastern
and central China such as Beijing, Shanghai, Guangdong and
Zhejiang – to register their marriage where their residence
permits were issued. Previously, a prospective bride and groom had
to return to the city or country of their hukou, or household
registration, to register for marriage.

Raising retirement ages

China in 2022 confirmed that it would delay retirement ages – 60
for men, 55 for female office workers, and 50 for female
blue-collar workers – from 2025.

Legalising births outside marriage

In Sichuan province, unmarried individuals will now be allowed
to register the birth of their children, whereas previously only
married women were legally permitted to do so.

Reducing abortions

China’s family-planning agency says it will “intervene” when
unmarried women and teenagers seek abortions, and will promote
traditional values to encourage people to have more children.

Associate Creative Director Marcelo DuhaldeEdited by Andrew London, Andrew MullenAdditional research and design by
Marcelo Duhalde, Mandy Zuo Cover illustration by Brian Wang

Sources: YuWa Population Research Institute, United Nations, The
World Bank, National Bureau of Statistics of China, Xinhua,
National Health Commision of China



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Tags: babiesChinaEXPLAINEDvisually

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