China needs to give incentives for couples to have a third child, analysts say
- Chinese authorities expand two-child policy to allow each couple to have three children as the country tries to cope with an ageing population
- But high living costs and a host of pressure could deter people from extending their families
After the announcement on Monday, many people said the high cost of living and other pressures would deter them from having more children.
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China expands two-child policy to three
A statement released after the meeting said major steps were needed to address the deepening problem of the ageing population.
“Birth policies will be further improved. A policy that allows a couple to have three children will be introduced with supporting measures,” it said. “This will improve the population structure of China.”
Dan Wang, chief economist at Hang Seng Bank (China), said the three-child policy would have a positive impact on China‘s birth rate, but not as much as the authorities hoped for.
Wang said that when China replaced its one-child policy with a two-child policy in October 2015, the birth rate rose immediately but the impact of the policy dissipated after three years.