China’s population has declined for the third consecutive year, according to official data released on Friday. The country’s birthrate has been steadily declining, with only a slight increase in births last year, which was attributed to the auspicious Year of the Dragon in the Chinese zodiac.
The decline is attributed to various factors, including an aging population and low fertility rates. China’s one-child policy, which was relaxed in 2015 to allow couples to have two children, has failed to stem the tide. The country now faces a long-term demographic challenge that is rippling through its economy, with hospitals shutting obstetrics units, companies idling factories, and thousands of preschool teachers losing their jobs.
The government has implemented various measures to encourage people to have more babies, including tax benefits, cheaper housing, and cash incentives. However, these efforts have been met with skepticism from young Chinese people who cite rising costs of education, growing burdens of taking care of aging parents, and a desire for a lifestyle known as “Double Income, No Kids” as reasons not to have children.
The decline in population is also affecting China’s healthcare system, education sector, and consumer market. Companies that once thrived on baby formula sales are now shifting their focus to adult nutrition products. The pressure on the health care system is even more pronounced, with dozens of hospitals and maternal health clinic chains reporting closures over the past two years.
As the population continues to decline, China’s public pension system faces a significant challenge. With over 400 million people projected to be 60 or older in the next decade, the government has implemented a plan to gradually increase the official retirement age to address the issue. However, experts warn that the number of births will likely continue to fluctuate, and the country still faces a long-term demographic challenge.
The decline in population highlights the complexities of China’s demographic transition and the need for effective policies to address the challenges it poses.
Source: https://www.nytimes.com/2025/01/16/business/china-population-births-deaths.html