Latest news with #ZhiweiZhang
See - Sada Elbalad
8 hours ago
- Business
- See - Sada Elbalad
China Offers $500 Annual Childcare Subsidy to Tackle Population Decline
Israa Farhan In a bid to reverse its declining birth rate, China will now provide annual subsidies of 3,600 yuan (about $500 or €429) per child under the age of three, according to an announcement by state media on Monday. This new national policy comes as China faces a deepening demographic crisis, with the country's population shrinking for the third consecutive year. The number of births in 2024 dropped to 9.54 million, half the figure recorded in 2016, the year Beijing ended its decades-long one-child policy. The population slowdown, paired with record-low marriage rates, has sparked growing concerns over long-term economic stability. Many young couples in China are delaying or forgoing parenthood due to high living costs, career pressures, and limited family support. More than 20 provincial-level administrations have already introduced local childcare incentives. Notably, Hohhot in Inner Mongolia offers families with three or more children up to 100,000 yuan per newborn. Similarly, Shenyang in Liaoning province pays families 500 yuan monthly for a third child until the child turns three. To further encourage family growth, Sichuan province is proposing major reforms, including extending marriage leave from 5 to 25 days and maternity leave from 60 to 150 days, aiming to build what it calls a 'fertility-friendly society.' Experts say these measures are a positive signal but unlikely to reverse the trend alone. Zhiwei Zhang, chief economist at Pinpoint Asset Management, noted the move reflects China's recognition of the serious economic risks associated with low fertility. Zichun Huang of Capital Economics called the subsidy a significant milestone in direct household support but warned it's too modest to boost short-term birth rates or consumer spending. While the new subsidies may encourage some parents to consider having more children, others remain unconvinced. Wang Xue, a 36-year-old mother from Beijing, said the financial aid was not enough to influence her decision. 'Having one child is manageable, but if I had two, I might feel a bit of (financial) pressure,' she said. China's government is expected to continue exploring broader reforms to slow the population decline and sustain long-term economic vitality. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence"
DW
10 hours ago
- Business
- DW
China to offer $500 per child in move to boost birth rate – DW – 07/28/2025
More than 20 provincial-level administrations in China now offer childcare subsidies. But analysts are skeptical that they will be able to reverse the declining population or spur spending. The Chinese government will offer parents subsidies of 3,600 yuan ($500, €429) per child under the age of three per year, Beijing's state media said Monday. China's population has declined for three consecutive years, the world's second most populous nation — after India — is facing an emerging demographic crisis. The number of births in 2024 — 9.54 million — was half as many as in 2016, the year that ended its one-child policy that was in place for more than three decades. Marriage rates in China have also hit a record low. Young couples put off having babies due to the high cost of raising children and career concerns. More than 20 provincial-level administrations in China now offer childcare subsidies, according to official data. In March, Hohhot, the capital of Inner Mongolia in northern China, started giving families money to have more children. Couples with three or more children can get up to 100,000 yuan for each new baby. In Shenyang, in northeastern Liaoning province, local authorities give families who have a third child 500 yuan per month until the child turns three. In order to create a "fertility-friendly society", China's southwestern Sichuan province is proposing to increase marriage leave from 5 to 25 days, and more than double the current 60-day maternity leave to 150 days. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Analysts said the subsidies are a positive step, but warned they won't be enough on their own to reverse China's population decline or lift its sluggish domestic spending. Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, told Reuters that the new subsidy showed the government had recognized the "serious challenge" that low fertility poses to the economy. Zichun Huang, China economist at Capital Economics, said the policy marked a "major milestone" in terms of direct handouts to households and could lay the groundwork for more fiscal transfers in the future. But he also said the sums were too small to have a "near-term impact on the birth rate or consumption." "For young couples who just got married and already have a baby, it might actually encourage them to consider having a second child," Wang Xue, a mother to a nine-year-old son from Beijing, told AFP. But she said the new measures would not be enough to convince her to have a second child. "Having one child is manageable, but if I had two, I might feel a bit of (financial) pressure," the 36-year-old told AFP.
The Star
15-07-2025
- Business
- The Star
Economy slows as consumers tighten belts
BEIJING: China's economy slowed less than expected in the second quarter of financial year 2025 (2Q25) in a show of resilience against US tariffs, though analysts warn that weak demand at home and rising global trade risks will ramp up pressure on Beijing to roll out more stimulus. The world's No. 2 economy has so far avoided a sharp slowdown, in part due to policy support and as factories take advantage of a US-China trade truce to front-load shipments, but investors are bracing for a weaker second half (2H25) as exports lose momentum, prices continue to fall, and consumer confidence remains low. Policymakers face a daunting task in achieving the annual growth target of around 5% – a goal many analysts view as ambitious given entrenched deflation and weak demand at home. Data yesterday showed China's gross domestic product (GDP) grew 5.2% in the April to June quarter from a year earlier, slowing from 5.4% in 1Q25, but just ahead of analysts' expectations in a Reuters poll for a rise of 5.1%. 'China achieved growth above the official target of 5% in 2Q25 partly because of front-loading of exports,' said Zhiwei Zhang, chief economist at Pinpoint Asset Management. 'The above target growth in 1Q25 and 2Q25 gives the government room to tolerate some slowdown in 2H25.' China's blue-chip CSI300 Index reversed course to trade down 0.1%, while Hong Kong's benchmark Hang Seng cut gains after the data came in, trading up 0.7%. On a quarterly basis, GDP grew 1.1% in April to June, the National Bureau of Statistics data showed, compared with a forecast 0.9% increase and a 1.2% gain in the previous quarter. Investors are closely watching for signs of fresh stimulus at the upcoming Politburo meeting due in late July, which is likely to shape economic policy for the remainder of the year. Beijing has ramped up infrastructure spending and consumer subsidies, alongside steady monetary easing. In May, the central bank cut interest rates and injected liquidity as part of broader efforts to cushion the economy from US President Donald Trump's trade tariffs. Further monetary easing is expected in the coming months, while some analysts believe the government could ramp up deficit spending if growth slows sharply. Separate June activity data also released yesterday underlined the pressure on consumers. While industrial output grew 6.8% year-on-year (y-o-y) last month – the fastest pace since March – retail sales growth slowed down to 4.8%, from 6.4% in May, hitting the lowest since January to February. Indeed, the headline GDP numbers held little sway for most households, including 30-year-old doctor Mallory Jiang, in southern technology hub Shenzhen, who says she and her husband both had pay cuts this year. 'Both our incomes as doctors have decreased, and we still don't dare buy an apartment. 'We are cutting back on expenses: commuting by public transport, eating at the hospital cafeteria or cooking at home. My life pressure is still actually quite high.' China observers and analysts say stimulus alone may not be enough to tackle entrenched deflationary pressures, with producer prices in June falling at their fastest pace in nearly two years. Zichun Huang, a China economist at Capital Economics, said the GDP data 'probably still overstate the strength of growth'. 'And with exports set to slow and the tailwind from fiscal support on course to fade, growth is likely to slow further during 2H25'. Data on Monday showed China's exports regained some momentum in June as factories rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline. The latest Reuters poll projected GDP growth to slow to 4.5% in 3Q25 and 4% in 4Q25, underscoring mounting economic headwinds as US President Donald Trump's global trade war leaves Beijing with the tough task of getting households to spend more at a time of uncertainty. China's 2025 GDP growth is forecast to cool to 4.6% – falling short of the official goal – from last year's 5% and ease even further to 4.2% in 2026, according to the poll. China's property downturn remained a drag on overall growth despite multiple rounds of support measures, with investment in the sector falling sharply in the first six months, while new home prices in June tumbled at the fastest monthly pace in eight months. Fixed-asset investment also grew at a slower-than-expected 2.8% pace in the first six months y-o-y, from 3.7% in January to May. Furthermore, the softer investment outturn reflected the broader economic uncertainty, with China's crude steel output in June falling 9.2% from the year before, as more steelmakers carried out equipment maintenance amid seasonally faltering demand. 'The 3Q25 growth is at risk without stronger fiscal stimulus,' said Dan Wang, China director at Eurasia Group in Singapore. 'Both consumers and businesses have turned more cautious, while exporters are increasingly looking overseas for growth.' — Reuters
DW
15-07-2025
- Business
- DW
China's economy grows 5.2% in Q2 despite US tariffs – DW – 07/15/2025
This year's first-half growth was boosted by government stimulus and a temporary pause in the US-China trade war, which allowed exporters rush out shipments ahead of new tariffs. China's economy grew 5.2% year-on-year in the second quarter of 2025 amid ongoing trade tensions with the United States, official data showed on Tuesday. The second quarter growth was slightly below the 5.4% pace in the first, but keeping on track to meet the government's full-year target of "around 5%." The first-half performance was supported by state stimulus and a pause in US-China trade war escalations that allowed exporters to rush out shipments ahead of potential tariff hikes. "China achieved growth above the official target of 5% in Q2 partly because of front loading of exports," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. Analysts, however, warn that the growth may not be sustainable. Weakened consumer confidence, falling prices, and a deepening property crisis continue to weigh on demand. "The real estate crisis remains a major medium-term drag on local government budgets," said Dan Wang, economist at the Eurasia Group. Investors, meanwhile, are bracing for a weaker second half even as additional stimulus are expected to be considered at the upcoming Politburo meeting in July. At the same time, according to economic research and consulting firm Prognos Institute, Chinese companies now account for 16% of global exports, double that of Germany, raising the stakes in an increasingly competitive global trade landscape. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Tensions are simmering between Washington and Beijing as the two nations clash over a range of issues, including Taiwan, emerging technologies and most importantly, trade. Escalating trade tensions, US President announced 145% tariffs on Chinese goods in April. However, negotiations between the two significant economies in May led to lowering of US tariffs to 30% for 90 days to allow for talks, while China also reduced its taxes on US goods from 125% to 10%. US-China competition is already substantially impacting global economy and politics. If the trade war between the two escalates once again, China might try to use the EU market to absorb Chinese production overcapacity. In turn, the US could also redefine goods manufactured in the EU through Chinese direct investment as Chinese products and demand higher levies from EU businesses. Meanwhile, as the US tightens trade restrictions with some Latin American countries, China is expanding its influence across South America.
Mint
15-07-2025
- Business
- Mint
Chinese economy grows 5.2%, beats expectations on strong exports; US tariff risks loom
China's economy slowed less than expected in the second quarter in a show of resilience against U.S. tariffs, though analysts warn that weak demand at home and rising global trade risks will ramp up pressure on Beijing to roll out more stimulus. The world's No. 2 economy has so far avoided a sharp slowdown in part due to policy support and as factories take advantage of a U.S.-China trade truce to front-load shipments, but investors are bracing for a weaker second half as exports lose momentum, prices continue to fall, and consumer confidence remains low. Policymakers face a daunting task in achieving the annual growth target of around 5% - a goal many analysts view as ambitious given entrenched deflation and weak demand at home. Data on Tuesday showed China's gross domestic product (GDP) grew 5.2% in the April-June quarter from a year earlier, slowing from 5.4% in the first quarter, but just ahead of analysts' expectations in a Reuters poll for a rise of 5.1%. "China achieved growth above the official target of 5% in Q2 partly because of front loading of exports," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. 'The above target growth in Q1 and Q2 gives the government room to tolerate some slowdown in the second half of the year.' China's blue-chip CSI300 Index reversed course to trade down 0.1%, while Hong Kong's benchmark Hang Seng cut gains after the data came in, trading up 0.7%. On a quarterly basis, GDP grew 1.1% in April-June, the National Bureau of Statistics data showed, compared with a forecast 0.9% increase and a 1.2% gain in the previous quarter. Investors are closely watching for signs of fresh stimulus at the upcoming Politburo meeting due in late July, which is likely to shape economic policy for the remainder of the year. Beijing has ramped up infrastructure spending and consumer subsidies, alongside steady monetary easing. In May, the central bank cut interest rates and injected liquidity as part of broader efforts to cushion the economy from U.S. President Donald Trump's trade tariffs. Further monetary easing is expected in the coming months, while some analysts believe the government could ramp up deficit spending if growth slows sharply. Separate June activity data also released on Tuesday underlined the pressure on consumers. While industrial output grew 6.8% year-on-year last month - the fastest pace since March, retail sales growth slowed down to 4.8%, from 6.4% in May and hitting the lowest since January-February. Indeed, the headline GDP numbers held little sway for most households including 30-year-old doctor Mallory Jiang, in southern tech hub Shenzhen, who says she and her husband both had pay cuts this year. "Both our incomes as doctors have decreased, and we still don't dare buy an apartment. We are cutting back on expenses: commuting by public transport, eating at the hospital cafeteria or cooking at home. My life pressure is still actually quite high." China observers and analysts say stimulus alone may not be enough to tackle entrenched deflationary pressures, with producer prices in June falling at their fastest pace in nearly two years. Zichun Huang, China economist at Capital Economics, said the GDP data "probably still overstate the strength of growth." "And with exports set to slow and the tailwind from fiscal support on course to fade, growth is likely to slow further during the second half of this year." Data on Monday showed China's exports regained some momentum in June as factories rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline. The latest Reuters poll projected GDP growth to slow to 4.5% in the third quarter and 4.0% in the fourth, underscoring mounting economic headwinds as U.S. President Donald Trump's global trade war leaves Beijing with the tough task of getting households to spend more at a time of uncertainty. China's 2025 GDP growth is forecast to cool to 4.6% - falling short of the official goal - from last year's 5.0% and ease even further to 4.2% in 2026, according to the poll. China's property downturn remained a drag on overall growth despite multiple rounds of support measures, with investment in the sector falling sharply in the first six months, while new home prices in June tumbled at the fastest monthly pace in eight months. Fixed-asset investment also grew at a slower-than-expected 2.8% pace in the first six months year-on-year, from 3.7% in January-May. The softer investment outturn reflected the broader economic uncertainty, with China's crude steel output in June falling 9.2% from the year before, as more steelmakers carried out equipment maintenance amid seasonally faltering demand. "Q3 growth is at risk without stronger fiscal stimulus," said Dan Wang, China director at Eurasia Group in Singapore. 'Both consumers and businesses have turned more cautious, while exporters are increasingly looking overseas for growth.'
