2-CHILD POLICY AND CHINA ECONOMY

Currently, there has been hot issues in China about the new child policy, which now, government has allowed people to have 2 kids. It’s such a long process, I have to say… Before the government really permitted people to have 2 children, people who want to have more children, either they have to pay or they can have one more child if both mom and dad don’t have any siblings. Yeah, it sounds complicated…

Unbalance Population

The reason why finally government decided this policy is to balance population development and deal with the issue of an aging population. China desperately has been trying to balance their population, moreover Chinese people see that having a son is a must as it continues the family’s legacy. But… Gradually, it makes an unbalance population between men and women.

Elderly in China LOVES to dance and aerobic

When I was talking about marriage with my Chinese friends at different times and different friends, the funny thing was they said something similar “Huh, it’s a problem here in China to talk about marriage, you know?” , they said. Men could have chance not finding their soulmate as men population is bigger than women. Moreover, when women marry foreigners… Yes, marriage is quite a complicated thing here in China.

Economy Trigger

Basically it’s caused by the population problem, but not only that… Economy is also taking part as one of the reasons behind.

There is an expectation to create new investments and increased demand for goods and services. The move comes as China’s economy growth is getting slower. But on the other side, this change also will increase demand for higher pay and increase labor costs.

Chinese government predicted that the new policy would increase the economic growth by about half of one percent. They said it would help China to provide about 30 million laborers by 2050.

One Chinese economist said that more children means more maternity homes, hospitals, kindergartens and schools. It will certainly result in massive investment in these areas. It will also lead to more spending on the second child, and therefore it will contribute to economic growth.

The government expects that at least 60 percent of parents having two children will come from rural areas.

Don’t be shocked! Children under 3 all over China wear this kind of pants to ease their emergency EVERYWHERE

Then, how did Chinese people respond?

On the day when Chinese government released the policy, I accidentally watched the interview with some local people on the bus. Most of them did not really welcome the new policy, as for them it would be another cost and burdensome…