China Worried Over Declining Population, Takes BIG Decision

Beijing: Concerned about its declining population, China has taken a major decision regarding condoms and other contraceptives. The Chinese government under Xi Jinping has reversed its old policy and has decided to impose a 13 percent sales tax on contraceptives. 

This decision came into effect on January 1, 2026, leading to an increase in the price of condoms and other contraceptives. These products had been exempt from taxes since 1994.  

Why has China taken this decision?
 
China had implemented the one-child policy due to its rapidly growing population. However, within 30 years, China's demographics underwent a significant shift, and the rapidly declining birth rate became a cause for concern.

Despite its best efforts, China, the world's second-largest economy, is unable to increase its birth rate. In 2024, China's population declined for the third consecutive year. Experts have warned China about this trend. In 2024, 9.54 million babies were born in China, which was half the number born in 2016.

Why is China worried?

China is currently a major economy and a large market. However, the declining population and the increasing number of elderly people will affect productivity and increase the burden on the government. There is a risk that China's economy will be severely impacted in the future. Experts say that China will grow old before it becomes rich. In 2024, the population of people over 60 years of age in China exceeded 310 million.

There was a time when China was worried about its rapidly growing population. In 1970, China's population reached nearly 1 billion. At that time, the one-child policy was implemented in China. Forced sterilization or abortions were also carried out in some cases. This continued for several decades, and for the first time in 2016, two children were allowed. Later, in 2021, permission was granted to have three children.