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China’s birth rate hit a record low in 2022 and 2023, accompanied by the first consecutive decline in population numbers for six decades. Photo: Reuters

China needs ‘urgent’ response to low population growth challenge: economic adviser

  • Former senior party official Ma Jiantang suggests changes to family planning laws and birth-friendly policies to address economic challenges
  • China’s changing demographic structure has already had a huge impact on the economy, and will continue to do so, he says
China’s population development has entered a “new normal” of “low and even negative growth”, according to a senior economic adviser who also called for a change in family planning laws to encourage more births.
In a speech on May 19 to a financial forum in Shenzhen, Ma Jiantang, former Communist Party secretary at the Development Research Centre of the State Council, said China was facing a low birth rate, an ageing population, as well as a declining proportion of young people, and a shrinking working-age cohort.
According to the New Economist think tank, which posted a report of the speech on its WeChat account on Monday, Ma said the structural changes to China’s population would “deeply affect” the country’s economy and required an “urgent” response.

He stressed that the pool of China’s workers had shrunk by 60 million over the past 12 years, which had had “a huge impact” on the economy, adding that many cities were struggling to recruit and battling unemployment and rising labour costs.

Ma suggested further changes to family planning laws – which were modified in 2015 and 2021 to allow second and third children. Despite these updates, the legislation’s guiding ideology was still family planning, not encouraging more births, he said.

Ma called for birth policies to promote assisted reproductive technology, registration of children born out of wedlock, improved birth insurance, extended maternity leave and more childcare centres.

Ma also said elderly care should be improved and retired people allowed to seek work, according to the report.

Data from the National Bureau of Statistics shows that China’s population declined for two consecutive years – 2022 and 2023 – for the first time in six decades, with a record low birth rate. In 2022, the overall population fell by 850,000 and in 2023 by 2.08 million.

In an interview with the South China Morning Post, independent demographer He Yafu said he agreed with Ma’s views and suggested that restrictions should be removed entirely.

“A policy that allows a third child means they don’t encourage more children,” he said. “I also recommend changing the law’s name from Population and Family Planning Law to Population Development Law.”

He, who is based in Guangdong province, southern China, added that Japan and Hungary’s experiences showed subsidies could help to increase birth rates.

“If the birth rate isn’t increasing, it means the money is not enough … We need to structure a birth-friendly society. Subsidies are an essential measure. It’s impossible to raise the birth rate without money,” he said.

But it might take more than money to fix the problem. An unmarried woman in Jiangxi province, southeastern China, told the Post that there was more to consider than childcare, including her own career, whether marriage benefited her, and how to live comfortably, especially in the economic downturn.

Yi Fuxian, a senior scientist at the University of Wisconsin-Madison who studies Chinese demographics, said the measures suggested by Ma would have limited effects, with most of the population living in high-density cities with low disposable incomes.

“Most families have difficulties raising even one child,” he said.

Average disposable income in China last year was slightly less than 44 per cent of the country’s per capita GDP, according to official data, compared to 73 per cent in the US.

The city of Panzhihua, in the southwestern province of Sichuan, provides an example of how complex the issue can be in China, after becoming the first to offer a financial incentive to encourage more births.

The 2021 scheme offered local families with two or more children a monthly payment of 500 yuan (US$69) per child, up to the age of three.

By the end of 2022, according to Panzhihua’s public statistics, the number of newborns had decreased from 8,432 to 7,629 and the number of marriages also fell, from 6,240 to 5,880.

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