China's Bold Bet on Boosting Birth Rates: Economic Strategy Meets Population Policy

China's new population strategies aim to counteract declining births and are integral to its economic approach. The initiatives, costing an estimated 180 billion yuan by 2026, include subsidies and insurance incentives. Despite significant spending, experts suggest limited impact, comparing similar efforts in Japan and Korea.

China is threading population policy into its economic fabric, rolling out extensive initiatives to tackle a declining birth rate, with expectations of a fourth consecutive annual drop, according to data due January 19. Reuters reports potential costs could hit 180 billion yuan by 2026 as the government attempts to reverse longstanding population control measures.

A key component is the national child subsidy, launched last year, which, along with insurance offerings, aims to eliminate pregnancy costs by 2026. The finance ministry has not commented on these projections, which align with economists' estimates. Experts warn China's aging population, shrinking since 2022, poses challenges to Beijing's economic ambitions.

Demographers believe these policies may have limited effects, reflecting trends across East Asia. Fertility rates in China remain one of the world's lowest, prompting comparisons to similar efforts in Japan and South Korea, which have shown minimal success. Reforming educational costs, job security, and social norms are also crucial to sustaining the demographic shift.

(With inputs from agencies.)