Viewing the steep decline in birth rate, the Chinese government has allowed couples to have up to three children.
In 2016, China had disposed of one-child policy, which was launched in 1980, to allow people to have two children. The two-child policy also failed to bring the desired number of children’s births, more so because parents feared the high cost of raising a child therefore they preferred not to have more.
Now President Xi Jinping has approved three-child policy during a politburo meeting.
The policy will come with “supportive measures, which will be conducive to improving our country’s population structure, fulfilling the country’s strategy of actively coping with an ageing population and maintaining the advantage, endowment of human resources”, state-run Xinhua News Agency said.
“But who wants to have three kids? Young people could have two kids at most. The fundamental issue is living costs are too high and life pressures are too huge,” Hao Zhou, a senior economist at Commerzbank, told Reuters.
He said the two-child policy would have been effective too, if relaxing the birth policy was effective.
Zhiwei Zhang, chief economist at Pinpoint Asset Management said, “The immediate impact is likely to be positive but small on the macro level. The long term impact depends on if the government can successfully reduce the cost for raising children – particularly education and housing.”
From 2000 to 2010, China’s population grew by 0.57% annually. While about 12 million children were born in 2020, which were significantly less than the 18 million born in 2016. Due to the low birth rate, the number of elderly people will increase in the future.