China tackles aging demographic, low birth rates via further reform

China has recently concluded the third plenary session of the 20th Communist Party of China (CPC) Central Committee, during which a resolution was adopted to further deepen reforms and advance Chinese modernization.

Among the various reform measures outlined, those aimed at enhancing people's livelihoods have drawn considerable public interest, particularly the reforms addressing population development. In response to aging demographics and declining birth rates, the resolution outlines improvements to childbirth policies and increased support for the elderly through extensive reforms.

China has been experiencing accelerated population aging in recent years. According to the latest data from the National Bureau of Statistics, by the end of 2023, the number of people aged 60 and above reached 296.97 million, accounting for 21.1 percent of the total population. Of this group, those aged 65 and older made up 15.4 percent. Additionally, the fertility rate in China was 1.3 live births per woman in 2020, reflecting a relatively low level.

The resolution proposes refining the policy system and incentive mechanisms to boost the birth rate and foster a childbirth-friendly society. Key measures include reducing the costs associated with childbirth, parenting and education, enhancing parental leave policies, introducing childbirth subsidies, improving basic public services for childbirth and pediatric care, and increasing deductions for childcare-related expenses in personal income tax.

China will also focus on developing a public-benefit childcare service system, supporting employer-run nurseries, community childcare facilities, and home-based childcare. The government will promote the seamless delivery of public services across urban and rural areas as well as different regions.

In addition to addressing the declining birth rate, the resolution emphasizes the need to tackle population aging proactively. China will enhance policies and mechanisms for elderly care programs and industries, develop the silver economy, and support the creation of diverse job opportunities for the elderly.

Following the principle of voluntary participation and flexibility, China will gradually raise the statutory retirement age in a prudent and orderly manner. To improve the availability of basic elderly care services, the country will develop community-based facilities, enhance the operation of public-run institutions, encourage enterprise and non-governmental participation in service provision, and promote mutual-aid elderly care and the integration of medical and elderly care.

China will also expedite efforts to address deficiencies in rural elderly care services, ensure better support for the elderly facing special challenges, including those living alone, with disabilities, or physical impairments, and accelerate the introduction of long-term care insurance schemes.

In recent years, China has already implemented a range of measures to address the challenges of aging and declining birth rates. For instance, starting in 2016, China introduced the two-child policy, which was further expanded in 2021 to allow couples to have three children. Accompanying these policy changes, the government has also introduced supporting measures, such as extending maternity leave and providing maternity allowances to alleviate the burden on families.

Recent information from officials at the National Health Commission reveals that provinces across China have implemented extended maternity leave of over 60 days, paternity leave of approximately 15 days, and parental leave ranging from five to 20 days. Currently, maternity leave in all provinces has been extended to over 158 days.

Furthermore, the commission, in collaboration with relevant departments, is actively advancing the development of childcare services for infants and toddlers aged 0-3. The central government has invested 1.6 billion yuan ($220.4 million) to support the establishment of 48 comprehensive childcare service centers and over 20,000 affordable childcare spots. As of now, nearly 100,000 institutions across the country provide childcare services, offering approximately 4.8 million childcare spots.

China has also made significant strides in enhancing elderly care services and infrastructure. Efforts include improving the social security system, promoting the aging industry, strengthening rural elderly care services, and ensuring balanced public services across different regions.

According to the Ministry of Civil Affairs, by the end of 2022, enrollment in the national basic pension insurance exceeded 1 billion people, with a coverage rate surpassing 95 percent, representing a substantial improvement in both coverage and benefits. By the third quarter of 2023, the total number of elderly care institutions and facilities nationwide had reached 400,000, with 8.206 million beds, an increase of over 60 percent compared to 2012.

The availability of urban elderly care services has also improved, with many cities adopting a "15-minute elderly care service circle" to ensure that elderly individuals can access convenient care services close to their homes. In rural areas, increased government investment has led to the construction of numerous township nursing homes, enhancing care conditions for the elderly.

Official data reveals that by the end of 2023, home-based and community-based elderly care services had established 235,000 family care beds and completed elderly-friendly renovations for 1.48 million homes of elderly individuals in need through annual enhancement projects.

Xinchang County in Zhejiang Province exemplifies China's efforts to integrate elderly care and childcare services. With a registered elderly population of 124,000 people aged 60 and above, the county explored the provision of "integrated services" by combining elderly care and childcare resources within the same facility. This approach provides residents with services such as rehabilitation, community dining, childcare and entertainment. Additionally, the county offers 24-hour in-home services for elderly individuals who are solitary or immobile.

"Lunch at the community canteen costs only 10 yuan. My 3-year-old grandson can also play in the childcare area. It's truly wonderful to have such high-quality elderly care services right at our doorstep," Zhang Jinmei, a retiree, shared her experience with China Media Group.