China's Population Challenge and Company Offer:
China is grappling with a population issue that poses economic concerns for the country. The aging population, declining birth rate, and lack of interest in marriage and having children among the younger generation are contributing to this problem. China, being the world's most populous nation, is experiencing a decline in productivity due to its aging workforce. In contrast to their previous campaigns discouraging childbearing, Chinese authorities are now promoting and pressuring people to have more children. However, the rising cost of living and economic struggles are deterring young Chinese citizens from starting families.
To encourage childbearing, the Chinese government has introduced various incentives, and private companies are also joining in. Recently, Trip.com, a prominent online travel agency in China, announced a significant offer for its employees. Employees who have been with the company for more than three years will receive a substantial bonus of 10,000 yuan (approximately Rs. 5.65 lakhs) per child per year for five years. This initiative aims to alleviate the financial burden associated with raising children. Trip.com's Executive Chairman, James Liang, revealed that $140 million will be allocated to support this program.
Population Decline:
China's population growth rate has significantly decreased over the past decade, with an annual growth rate of 0.53%. This decline in population growth has significant implications, as the number of elderly individuals will increase while the number of youth decreases, negatively impacting the country's economy. The Chinese government is concerned about the decrease in the working-age population, which has seen a reduction of 40 million individuals between the ages of 16 and 59. Despite the relaxation of the one-child policy, the number of births has not increased substantially. While 12 million babies were born in 2020, the figure rose to 14.65 million by the end of May 2021.
