This decision comes at a time when Beijing is finding it challenging to increase birth rates in the world’s second-largest economy. China’s population declined for the third straight year in 2024, with experts warning that this trend may persist.
Read Also: Neuralink plans ‘high-volume’ brain implant production by 2026, Musk says
In addition, China has exempted childcare subsidies from personal income tax and introduced an annual childcare subsidy last year, amidst a series of “fertility-friendly” initiatives in 2024. These include encouraging colleges and universities to provide “love education” to promote positive views on marriage, love, fertility, and family.
At last month’s annual Central Economic Work Conference, top leaders reiterated their commitment to fostering “positive marriage and childbearing attitudes” to stabilize birth rates.
China’s birth rates have been declining for decades, influenced by the one-child policy enforced from 1980 to 2015 and rapid urbanization.
Factors such as the high costs of childcare and education, along with job insecurity and an economic slowdown, have further deterred many young Chinese from marrying and starting families.
