- According to policy sources, China will proceed cautiously in relaxing its birth policies for fear of jeopardizing social stability.
- The most recent census emphasizes the importance of addressing the country's declining birth rates and aging population.
- In the late 1970s, China implemented a contentious "one-child policy," but relaxed restrictions in 2016 to allow all couples to have two children.
- However, the change failed to halt declining births as it attempted to rebalance its rapidly aging population.
- The risk is emphasized by a fertility rate of 1.3 children per woman in 2020, which is comparable to that of ageing societies such as Japan and Italy.
- In recent weeks, the People's Bank of China has become more vocal about the sensitive population issue.
- The PBOC stated in April that China should "fully liberalize and vigorously encourage childbirth."
- Demographic changes may cause economic stagnation, a drop in the savings rate, and asset price deflation.
- The growing rivalry between China and the United States has increased the urgency for China to build a more innovative economy.
- China aims to reduce its reliance on foreign markets and technology under President Xi Jinping's "dual circulation" strategy.
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