China Is Implementing New Policies Against Declining Birth Rates

Innovative Steps Against Population Decline from China

The Director of the National Health Insurance Administration of China, Cang Ki, announced new health regulations to combat the country's declining birth rates at a conference held in Beijing.

Cang stated that with the upcoming general health regulation, all expenses related to childbirth will be covered by the state. This aims to expand the insurance coverage for pregnancy-related health expenses.

Additionally, he shared that analgesic medications related to childbirth will also be included in the insurance coverage, emphasizing that births will be free of charge nationwide.

Policies Encouraging Births

In recent years, both central and local governments in China have initiated regulations to reduce birth, childcare, and education costs in response to declining birth rates. Pilot projects covering 255 million people and implemented in 7 provinces aim to cover childbirth expenses.

Long-term Demographic Change

Analysts point out that China's population is aging, leading to a decrease in the working-age population. In 2022, the country experienced its first population decline, and the birth rate fell to a historic low of 6.39 per thousand in 2023.

The government abandoned the one-child policy implemented since the 1980s, first allowing two children in 2016 and then three children in 2021. However, economic difficulties and rising costs of child-rearing have caused families to hesitate about having more children.

It is anticipated that population decline, along with an aging population, will lead to a decrease in labor potential and thus have negative effects on the economy.