Demographic Pressure Forces 2016 Change in China’s One-Child Policy

In  1979,  the  Chinese  government  introduced  the one-child  policy  in  order  to  curb  the country’s population growth. It is estimated that 400 million births were prevented because of the policy. Now, 36 years later, the Chinese government announced the end of this controversial policy.  As of March 2016, all couples will be allowed to have one or two children.  The reason for the policy change? Purely demographic: After 36 years of the one-child policy, China is facing an increasingly elderly population and a decreasing labor force.  By 2030, it is estimated that a quarter of China’s the population will be over 60 years old with not enough young people to provide for the elderly population’s retirement and health care needs, as well as fueling the China’s continued domestic economic growth.  Analysts say that despite the coming relaxation of rules, couples may opt for only one child, since this is now the social norm.

When considering what compensation and benefits Chinese employees care about, these demographic pressures matter. Additional insights on China and its employee benefit norms can be found on Asinta’s country page for China.

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