Xi says China will search to raise start fee in face of ageing inhabitants By Reuters

By Yew Lun Tian and Martin Quin Pollard

BEIJING (Reuters) – China will enact insurance policies to spice up its start fee, President Xi Jinping stated on Sunday, as policymakers fear that an imminent decline in China’s inhabitants may harm the world’s second-biggest economic system.

“We are going to set up a coverage system to spice up start charges and pursue a proactive nationwide technique in response to inhabitants ageing,” Xi instructed some 2,300 delegates in a speech opening the once-in-five-year Communist Get together Congress in Beijing.

Though China has 1.4 billion individuals, probably the most on this planet, its births are set to fall to document lows this 12 months, demographers say, dropping beneath 10 million from final 12 months’s 10.6 million infants – already down 11.5% from 2020.

The authorities imposed a one-child coverage from 1980 to 2015, later switching to a three-child coverage, acknowledging the nation is getting ready to a demographic downturn.

Its fertility fee of 1.16 in 2021 was beneath the two.1 OECD customary for a steady inhabitants and among the many lowest on this planet.

Over the previous 12 months or so, authorities have launched measures reminiscent of tax deductions, longer maternity depart, enhanced medical insurance coverage, housing subsidies, extra cash for a 3rd youngster and a crackdown on costly personal tutoring.

Nonetheless, the will amongst Chinese language girls to have kids is the bottom on this planet, a survey printed in February by think-tank YuWa Inhabitants Analysis confirmed.

Demographers say measures taken thus far aren’t sufficient. They cite excessive training prices, low wages and notoriously lengthy working hours as points that also have to be addressed, together with COVID-19 insurance policies and financial development issues.