China begs for babies after years of punishing parents, ready to spend ₹1 lakh crore; but, youth is not convinced
To encourage this, the government will give 3,600 yuan ( ₹ 44,000) every year for each child under three, retroactively effective from January 1.
Beijing plans to spend 90 billion yuan (more than ₹ 1 lakh crore) to help 20 million families this year. Earlier, only local governments gave such support. This is the first time the Central government is giving a national subsidy.
However, experts say this may not increase birth rates much. Similar plans failed in Japan and South Korea, according to CNN.
Many young people in China feel stressed due to long work hours, expensive housing and uncertain jobs. The small allowance doesn't solve these bigger problems. While some parents welcome the money, others remain unsure about having kids.
'The cost of raising a child is enormous, and 3,600 yuan a year is a mere drop in the bucket,' Zane Li told CNN.
When Zane was 9, her parents had to pay a hefty amount for having a second child. Zane, now 25, says he has no plans to have a baby.
'(Having kids) would only bring more hardship. I'm not a capitalist or anything, and my kid probably wouldn't have much of a good life either,' Zane added.
On Chinese social media, young people are sharing old receipts showing fines their parents had paid for having more than one child during the one-child policy. Many had grown up thinking life would improve with hard work and education. But now, hope is fading, CNN reported.
Property is too expensive, and good jobs often go only to those with strong family contacts. Even though China ended the one-child rule and now allows up to three children, birth rates continue to fall. The population has been shrinking for three years.
According to the Peterson Institute For International Economics, China recorded 9 births and 11.1 million deaths in 2023. The institute said the population decline was 'getting close to irreversible'.
Raising one child in China costs an average of 538,000 yuan ( ₹ 65 lakh), which is over six times the country's average income. In cities like Shanghai and Beijing, it costs much more, crossing ₹ 1 crore.
Because of such high costs, many couples are choosing not to have children. The younger generation is now more worried than hopeful about their future, the publication added.
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