During his speech at the recent China Entrepreneur Summit, Ctrip CEO Liang Jianzhang called for the government to provide subsidies to families with more than one child. Liang’s rather radical proposal is that 15% be taken out of China’s total gross domestic product for the purpose of supporting growing families.
Despite the recent policy allowing Chinese families a second child, surveys have shown that most citizens remain hesitant, due to the burdensome expenses inherit in raising just a single child in Chinese cities.
Liang justified his proposal on the grounds that an estimated 15% of worker tax is used for the care of the elderly, who, of course, are decidedly more plentiful.
“If the youth-to-old ratio is maintained, that means the second children in their families are paying for nobody when they grow up… So, fairly speaking, their money should be reimbursed to their families,” Liang said.
Incidentally, deputy director Du Peng of the Institute of Population Research believes it unlikely that Liang’s motion will come to pass, as the effects of the second-child policy are yet to be sufficiently reviewed. Considering China’s established horror at the prospect of producing more offspring, there may well be little to show.
Perhaps Liang can collaborate with Zhejiang University economics professor Xie Zuoshi, who proposed in October that low-income men should share wives in order to make up for China’s gender discrepancy, on a more wide-ranging proposal.
By Pinky Latt