An ageing China is doing all it can to incentivize couples to have three children. Mega perks include tax cuts, baby bonuses, extended paid leave among others for couples having a third child.

“There is no time like the present to be an expecting parent in China. The Government is happily rolling out a slew of supportive measures to encourage couples to have a third child,” Fabien Baussart, political and foreign policy analyst wrote in a blog published by the Times of Israel.

Several Chinese companies have already started announcing a host of incentives.

The blog added that Beijing Dabeinong Technology Group, a leading agricultural biotechnology company has become the harbinger of new incentive methods offering its employees benefits including cash up to 90,000 yuan ($14,100), supplementary maternal leave of up to 12 months and 9 days paternal leave, over and above the stipulated period as per Chinese law.

Data revealed that in 2020, there were 8.5 births per 1,000 people signifying that it had fallen below the psychological figure of 10.

Also read: With the baby boom long gone, can China become super-rich and keep it that way?

China’s fertility rate has fallen below 2. According to the World Bank in 2019, the country’s fertility rate was 1.70. It has further dropped in the last two years.

Birth rate refers to live births per 1,000 of the population every year while fertility rate is an individual-specific parameter of a woman, indicating the average number of children she could give birth to in her lifetime.

“Forget all the other worries about China. The big problem is that the country is going to run out of its most productive workers. Ultimately, this means that growth will start grinding to a near crawl, at best,” Forbes said.

The moot question however remains. Will the three child policy succeed? The country’s two child policy failed to bear results. But all eyes on the three child policy as it comes with a host of incentives to couples. The jury is out.