China’s Birth Rate is So Low After Decades of Population Control, It’s Giving Out Child Tax Credits

As China relaxes its child-bearing policies amid a declining birth rate, the country plans to promote tax deductions for child expenses in the country for those under three, according to an official document outlining the policy initiative, Xinhua reported.

On May 31, Beijing said it would allow married couples to have up to three children, Xinhua reported. The changes are an attempt to save the world’s most populous country’s economy and correct its slowing population.

The previous limit was two children after Beijing ended its decades-long one-child policy in 2016 over concerns of an aging population, but it didn’t lead to the necessary increase in births, due to the high costs of raising children in the country’s cities, Reuters reported. The policy was jointly adopted by the ruling Communist Party and the State Council in June.

In 2020, China’s fertility rate was at 1.3 children per woman, but around 2.1 is needed to be at a level of replacement, according to recent data, Reuters reported. The numbers and findings were similar to Japan and Italy which are also considered aging populations.

The document explained exact measures on how to enact the new policy, which said parents would not have to pay a fine previously in place for having a third child, be punished by work units or deal with restrictions in getting a household permit or a place in schools, Xinhua reported.

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Expenses required for the care of a child below the age of three will be tax-deductible, local governments are instructed to take “due care” of parents of minors when applying to rent public flats and China will regulate technology to assist with reproduction, Reuters reported. 

China’s population grew to 1.41 billion, which is its lowest rate since the 1950s, according to a May census, Reuters reported. The country is concerned that the population would get too old before it gets wealthy and sparked the question of whether China’s authorities had waited too long to fix the slowing birth rate.

LifeNews Note: Kendell Tietz writes for Daily Caller. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience.

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Author: Kendell Tietz

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