The company, one of the world’s largest online travel agencies, with 400 million users, said it would pay a parental cash subsidy of 10,000 yuan annually for five years for every child born to its employees worldwide. The program will cost about 1 billion yuan, the company said.
China’s government is stepping up efforts to encourage families to have children as it grapples with a shrinking workforce and increased social spending. But fiscal constraints and rising living and education costs remain major hurdles, particularly for women who must make significant career sacrifices to have more children.
Several cities and provinces in China are offering bonuses, cash, and tax breaks to help couples afford to have more babies. The southwestern city of Guangzhou gives yuan 25,000 to couples for each child, while the capital Beijing, offers yuan 3,000 for a second child and 5,000 for a third. In December, the central Chinese province of Jilin unveiled a new home loan program offering higher interest rates to couples with three or more children. Other incentives include housing subsidies, cash gifts, and extra maternity leave.
The move is part of a broader effort by China’s government to try to rekindle the population growth rate after decades of decline. Officials are worried that an aging population could impede the country’s economic ascent, straining public education and health care systems and prompting young people to leave the rural areas for urban jobs.
But while loosening restrictions on couples who want more than two children has been widely welcomed, it is unlikely to boost birthrates significantly. Many couples, especially those in urban areas, have hesitated to have another child due to the high cost of living.
And some may feel that the government is trying to control their fertility with an invasive and bureaucratic system of registration, medical records, and family planning centers. And in addition to fears of a growing older population, some also worry that allowing couples to have more children will increase social instability and create a generation gap.
A rare occurrence, China’s local governments publicly call for Beijing’s assistance as they struggle with mounting debt. This month, a report published by Guizhou provincial authorities warned that a default is inevitable, while Hohhot has already racked up a multi-billion yuan debt.
Guizhou and Hohhot’s public cries for help highlight how far some of China’s provincial and municipal governments have pushed their financial limits as they try to fund their rapid development through massive infrastructure investments. It is a precarious time, and more such calls are likely as officials feel pressured to break their silence over their mounting debt. The crisis will likely lead to a rethink of how China finances its local government investment and how the government controls local debt levels.
