China intensifies reforms aimed at enhancing people's lives

With China's annual Central Economic Work Conference expected to take place in December, experts anticipate that, in addition to discussions on the economy and measures to enhance growth, improving lives and boosting people's sense of fulfillment through further reform will be major focuses.

In July, the Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) adopted a resolution on further deepening reform comprehensively to advance Chinese modernization. It pledged to ensure and enhance the people's well-being through improving the income distribution system, the employment-first policy and the social security system, and said the CPC will further reform the medical and healthcare systems, and create a "birth-friendly society."

Several impactful reforms have been implemented in recent years with the aim of addressing pressing social needs. In 2024 alone, efforts to improve the country's healthcare system, care for the elderly and children, and employment have delivered tangible benefits to millions across the nation.

In October, the State Council issued a directive outlining 13 targeted measures designed to enhance childbirth support services, expand childcare systems, strengthen support in education, housing and employment, and cultivate a "birth-friendly" social atmosphere.

Key provisions include extending the maternity insurance scheme to individuals in flexible employment and rural migrant workers, establishing a childbirth subsidy system to reduce families' financial burden, and improving the childcare service system by establishing more childcare service centers and increasing the number of high-quality pediatric hospitals and pediatricians. In addition, labor pain relief and assisted reproductive technology services will be added to the list of medical services eligible for insurance reimbursement.

China entered a phase of population decline in 2022, with individuals aged 65 and older now comprising over 14 percent of the population, indicating a moderately aged society, Xinhua News Agency reported. In light of the demographic shift, China has gradually relaxed its family planning policies over the past decade. In 2016, the country phased out the decades-long one-child policy. In 2021, support was announced for couples wishing to have a third child.

In response to the challenges created by an aging population, China has also focused on improving quality of life for the elderly and promoting sustainable social development. In 2021, a five-year plan setting out a comprehensive framework to address the aging population and elevating the active response to population aging as a national strategy was published. In May 2024, the Ministry of Civil Affairs, alongside 21 other departments, released a comprehensive guideline to develop rural elderly care services.

China is modernizing old communities in cities with improvements such as elevators, elderly care services and age-friendly home adaptations. Since 2020, over 250,000 communities have been renovated, benefiting more than 100 million residents.

In rural China, the government is building a multi-tiered elderly care system at the county, township and village levels. According to the Ministry of Civil Affairs, the government will allocate an additional 300 million yuan (around $41 million) in central financial funds this year to conduct innovative rural elderly care service trials in 59 pilot areas. These institutions aim to offer functions such as full-day care, day care, home services, regional coordination and service referrals.

By mid-2024, China had established 410,000 elderly care facilities, including 369,000 community-based services, representing a significant increase of 100 percent and 120 present respectively compared to 2019.

Ren Zeping, an independent economist and founder of Zeping Macro, predicted in a recent report on the upcoming Central Economic Work Conference that the Chinese government will roll out more policies next year aimed at further stimulating the economy and boosting consumption to enhance people's sense of participation and well-being.

He noted that sectors such as elderly care, childbirth and tourism hold significant potential to drive consumer spending. 

The government has already introduced several recent policies to stimulate consumption, including the "trade-in" policy, which currently targets industrial equipment and household appliances. Ren expects that next year, the government will expand consumption subsidies to include service sectors such as health and elderly care, childcare and community services. He also wrote that subsidies for families with two or three children are likely to be increased.