China’s Three-Child Policy Faces Budget Concerns and Public Skepticism

China’s Three-Child Policy Faces Budget Concerns and Public Skepticism

China’s New Three‑Child Policy: What’s Really Brewing?

On June 1, the chatter that started on the platform Weibo—think of it as China’s Twitter—reached a crescendo: we’re suddenly allowed to have a third baby, but will that change anything? The buzz is loud, the skepticism thick, and everyone’s itching for the details on those “supportive measures” that are supposed to sweeten the deal.

Policy Shift 101

Just last week, Beijing lifted the lifetime two‑child ceiling, hoping to tip China’s rapidly aging population curve. While the move is a nod to urgent demographic shifts, the real kicker is what comes after the headline: actually making it “easy” to keep a family propped up.

  • Education Cost Cuts – Imagine a policy that does more than just lower tuition. We’re talking significant reductions in private tutoring and public school fees.
  • Tax Relief & Housing Subsidies – Think of it as a “no more rent nightmare” promised by the state.
  • Workplace Protections – Legal safeguards for women who juggle careers and kids, especially those in their 30s.

But hold the phone, the official Xinhua broadcast didn’t unpack the specifics, leaving the internet to fill the gap with whispers and speculation.

Why Everyone’s Skeptical

There are a few hard‑truths:

  1. Rising Baby‑Cost – The average Shanghai mom spends a fortune on housing and a fortune more in tuition. In such a competitive environment, a new child feels like a luxury, not a necessity.
  2. Gender Equity Strikes – Women in China already face a widening pay gap and heavier childcare loads, with dwindling state childcare support.
  3. Job Security Fear – Working mothers, especially over 30, worry that a new child could strip them of opportunities or influence hiring bias.

In short: “I don’t understand these supportive measures, what’s actually going to happen?” yelled one Weibo user, pumping up the comment with 128k thumbs‑up—the top trump card on Xinhua’s policy post.

Expert Take: James Liang’s Vision

Dr. James Liang, a professor at Peking University who also launched the travel tech behemoth Trip.com Group, sounds like a quasi‑billionaire wizard. Last month, he pitched a shock‑ingly generous plan: give every new baby a cool one‑million‑yuan gift—roughly S$207,300—essentially a kudos reward for families. That number could push China’s fertility rate from a lean 1.3 to something that feels more like a slight “not that bad” not 1.6 yet.

He’d like to see the government bend the elbow on five percent of GDP—a huge jump from the “virtually zero” steel‑instated today. He’s counting on:

  • Cash bonuses.
  • Tax breaks.
  • Housing subsidies.
  • Day‑care and kindergarten expansion.

“The one I’d love to see is the housing subsidy, especially in big cities. If local governments kick back land taxes or give discounts to couples with a second or third child, it could truly ease the burden,” Liang insisted.

From Theory to Reality?

Developed nations typically pour 1‑4% of GDP into such programs. China is currently as penny‑wise as a toddler with a temper tantrum in a candy aisle. Whether it breaks the cost‑crack in a housing frenzy or brings the girl‑boss hiring vibe back on track remains the real mystery.

So, what’s the verdict? The headline says yes, we can now have a third child. The punchline? We’ll still have to ask if the state is ready to back it up with concrete, bite‑level help—making life less expensive and actually workable for families.

Uptick and decline

China’s Baby Boom (and Bust) After the One‑Child Reset

When Beijing finally lifted the one‑child rule back in 2016, parents felt a burst of hope—new babies were popping up on the streets, and the national birth rate ticked up for a brief moment. But then the numbers started falling faster than a skateboard used on a banana peel. In fact, the decline keeps gathering momentum as life becomes more pricey.

Yi Fuxian: The One‑Child Legacies Still Live on

University of Wisconsin researcher Yi Fuxian has been sounding the alarm for years about the long‑term effects of the policy. He claims that the habit of having only one baby—or zero—has become the default mental setting in China. “It’s like a self‑fulfilling prophecy,” he says. “People think that is all folks, and society’s services, everything from schooling to pension plans, have built around that idea.”

Japan’s Quick‑Fix Experiments

Across the Pacific, Japan tried a different playbook. The government rolled out a bundle of perks: free childcare and schooling, generous housing subsidies for young couples and free medical care for kids. These moves nudged Japan’s fertility rate from 1.26 in 2005 to 1.45 in 2015. The boost, however, fizzled out a few years later, dropping to 1.36 by 2019.

A Snapshot of the Numbers
  • 2005 Japan: 1.26
  • 2015 Japan: 1.45
  • 2019 Japan: 1.36

The Global Times Weighs In

The Global Times (the party‑owned tabloid) addressed the reality that three‑child families in major cities are still a tall order. It acknowledges that swirling finances aren’t the sole culprit. The editorial argued that “changing ingrained attitudes about kids and family values is as vital as the country’s economic trends.” Encouraging new expectations of what it means to be happy in a low‑birth‑rate society, the paper calls for a cultural reset.

What’s Next?

In short, China’s demographic tapestry is fraying. Even with the one‑child policy gone, the old logic lingers, and the hefty cost of modern life makes starting families a luxury this generation can’t always afford. For Japan, free benefits helped for a moment, but the gains have slipped. The lesson? Policies alone won’t freeze the population clock—people’s hearts and budgets need a double‑dose revamp.