Why the Two-Child Policy Does Not Heavily Affect China’s Business Economy

When the two-child policy was declared in China, many business opportunities as well as potential economic problems surfaced. After all, an increase in population has various effects. From having a bigger and profitable market for baby products or real estate business, to a growth in the annual GDP and sudden increase in expenses.

Worldometer - China Population 2017
Worldometer – China Population 2017


The two-child policy became applicable in China beginning January 1, 2016. Based on Worldometer, a site that computes and records population, China’s population increase rate in 2015 was 0.52%. In 2016, the time when the two-child policy came into effect, the rate of increase in population from 2015 even decreased down to 0.46%.


Age is an important factor if you want to take advantage of the two-child policy, because age often shows capacity to reproduce. Unfortunately, many couples who wanted to have another child but were barred by the previous law (one-child policy) have turned old. The capacity to reproduce and give birth can be more complicated for them now.


[caption id="attachment_885" align="alignleft" width="300"]Education in China - WENR Education in China – WENR[/caption]

There is a big gap between the rich and the poor in China. Although there can no problem for the rich, the poor couples, although willing, would opt not to have another child because of the expenses that come along with it. Education is another issue. According to the Chinese Academy of Social Science, parents who reside in an average city in China spend about $77,165 USD in raising a child from birth until the child reaches the age of 16. Even then, the child still needs continues support. It is worth noting that in China, education is given primary importance, and Chinese parents would usually not hesitate to spend their salary to enroll their child in a reputable school.

Personal Preference

Many Chinese are already used to having only one child. And even just with one child, they have experienced and realized that raising a person is not that easy, especially considering the salary of the rank and file employees in China.


[caption id="attachment_880" align="alignnone" width="300"]2 Child Policy 2 Child Policy[/caption]

There appears to be a controversy with regard to the effects of the two-child policy on the lives of the people in China. And what may be true today may not be true tomorrow. The significant changes, if any, can be made clearer this 2017.

Free Book: Doing Business in China - Tips and Tracks

China has its own business culture and etiquette.
There are many things that a businessman from West needs to understand if he wants to enter the China market and succeed.

Check Email To Downoad the book

Something went wrong.

You might also like More from author


Hide me
Free Giveaway Book: Doing Business in China – Tips and Tracks
Subscribe to download - Doing Business in China – Tips and Tracks
Show me
Build an optin email list in WordPress [Free Software]

Send this to friend