The Challenge of Raising Children in China: Affordability and Declining Birth Rates

China faces a dual challenge: a declining birth rate and the title of the second-least affordable country in the world to raise a child, according to a recent report from a Beijing-based think tank.

Affordability Concerns

The report, titled “China Childbirth Cost Report 2024” by Yuwa Population Research, reveals that raising a child in China costs families an average of 6.3 times the country’s GDP per capita. This places China ahead of countries like the US, Japan, and the UK in terms of child-raising expenses. For comparison, in the US, the cost of raising a child is approximately 4.11 times the GDP per capita.

Factors Driving Costs

Various factors contribute to the high cost of raising children in China. Yuwa’s report breaks down expenses into categories such as education, healthcare, food, clothing, and entertainment. Additionally, short-term expenses like pregnancy and childbirth add to the financial burden. Urban families bear a higher cost, spending on average 666,699 yuan, while rural families spend 364,868 yuan.

Affected Demographics and Policies

China’s birth rate has been declining, with urban families typically having one or two children despite the removal of the one-child policy. Housing costs, especially in major urban centers like Shanghai and Beijing, further exacerbate the financial strain on families. Women are disproportionately affected, experiencing reduced work hours and declining wage rates after having children.

Potential Solutions

To address declining birth rates and alleviate financial burdens on families, Yuwa suggests various measures. These include cash and housing subsidies, investment in childcare facilities, education system reforms, and workplace practices that support parents. By implementing such measures, China could potentially double its birth rate, according to Yuwa’s projections.

Changing Landscape

Despite the challenges, there is a glimmer of hope as the average cost of raising a child in China has slightly decreased compared to previous years. However, significant reforms and support systems are necessary to ensure the well-being of families and address the broader demographic challenges facing the country.