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Trump Threatens Iran Over Protest Crackdown As Deadly Unrest Flares
American President Donald Trump threatened on Friday to come to the aid of protesters in Iran if security forces fire on them, days into unrest that has left several dead and posed the biggest internal threat to Iranian authorities in years.
“We are locked and loaded and ready to go,” he said in a social media post. The United States struck Iranian nuclear facilities in June, joining an Israeli air campaign that targeted Tehran’s atomic programme and military leadership.
Top Iranian official Ali Larijani responded to Trump’s comments, warning that U.S. interference in domestic Iranian issues would equal the destabilisation of the whole region. Iran backs groups in Lebanon, Iraq and Yemen.
The comments came as a local official in western Iran, where several deaths were reported, was cited by state media as warning that any unrest or illegal gatherings would be met “decisively and without leniency”, raising the likelihood of escalation.
Biggest Protests
This week’s protests over soaring inflation have spread across Iran, with deadly confrontations between demonstrators and security forces focused in western provinces.
State-affiliated media and rights groups have reported at least six deaths since Wednesday, including one man who authorities said was a member of the Basij paramilitary affiliated with the Revolutionary Guards.
Iran has seen off repeated bouts of major unrest in recent decades, often quelling protests with heavy security measures and mass arrests. But economic problems may leave authorities more vulnerable now.
This week’s protests are the biggest in three years, since nationwide demonstrations triggered by the death of a young woman in custody in late 2022 paralysed Iran for weeks, with rights groups reporting hundreds killed.
Video verified by Reuters showed dozens of people gathered in front of a burning police station overnight, as gunshots sporadically rang out and people shouted “shameless, shameless” at the authorities.
In the southern city of Zahedan, where Iran’s Baluch minority predominates, the human rights news group Hengaw reported that protesters had chanted slogans including “Death to the dictator”.
Hengaw has reported 29 arrests so far over the unrest, mostly in the west, and including 14 members of Iran’s Kurdish minority.
State television also reported the arrest of an unspecified number of people in another western city, Kermanshah, accused of manufacturing petrol bombs and home-made pistols.
The deaths acknowledged by official or semi-official Iranian media have been in the small western cities of Lordegan and Kuhdasht. Hengaw also reported that a man was killed in Fars province in central Iran, though state news sites denied this.
President Acknowledges Mistake
During the latest unrest, the elected President Masoud Pezeshkian has struck a conciliatory tone, pledging dialogue with protest leaders over the cost-of-living crisis, even as rights groups said security forces had fired on demonstrators.
Speaking on Thursday, before Trump threatened U.S. action, Pezeshkian acknowledged that failings by the authorities were behind the crisis.
“We are to blame… Do not look for America or anyone else to blame. We must serve properly so that people are satisfied with us…. It is we who have to find a solution to these problems,” he said.
Pezeshkian’s government is attempting a programme of economic liberalisation, but one of its measures, deregulating some currency exchange, has contributed to a sharp decline in the value of Iran’s rial on the unofficial market.
The sliding currency has compounded inflation, which has hovered above 36% since March, even by official estimates, in an economy battered by Western sanctions.
The Israeli and U.S. strikes last year have added to the pressure on the authorities, as have the ousting of Syria’s Bashar al-Assad, a close Tehran ally, and the Israeli pounding of its main regional partner, Lebanon’s Hezbollah.
Iran continues to back groups in Iraq that have previously fired rockets at U.S. forces in the country, as well as the Houthis group that controls much of northern Yemen.
“American people should know that Trump started the adventurism. They ought to watch over their soldiers,” said Larijani, the head of Iran’s National Security Council and a top adviser to Supreme Leader Ayatollah Ali Khamenei.
(with inputs from Reuters)
Xi Jinping Recycles Old Tropes, From Taiwan To Economic Growth
China’s President Xi Jinping used his New Year 2026 address to deliver a broadside on Taiwan: reunification with the mainland is an “unstoppable trend”, he said, underscoring that “The people on both sides of the strait are bound by blood ties thicker than water.”
If that was indeed the case, why did his military spend two days carrying out naval exercises and firing drills around the little island? As many as 200 fighter jets flew intimidatory missions and Taiwan reported 27 missiles being fired that hit near the coast. ,
The president’s address was beamed live nationwide on state media, and perhaps just to drive the point home, it was interspersed with images of China’s national day parade last September to mark the end of World War II. The parade featured top of the line military equipment including nuclear missiles.
Promises of Growth and Global Stability
He said the world was facing a period of “intertwined turbulence and transformation”, an indirect reminder of the tariff war, and promised that China would continue to stand on “the right side of history” and would work with other countries to promote peace, development and global cooperation.
In an article in Qiushi, the Communist Party’s main theoretical journal, Xi said China must secure the “strategic initiative” in global competition. Warning that the coming years would be important for the country’s future, he urged people to ” “remain confident, seize the momentum and steadily advance high-quality development”.
Confidence Amid Global Challenges
Xi said China was on track to meet its growth target of around 5 per cent for 2025, adding that GDP would reach nearly $20 trillion. This would provide a solid base for the 15th Five-Year Plan, which runs from 2026 to 2030.
He said the government would follow “more proactive macroeconomic policies” to keep growth at a healthy and reasonable level and to maintain social stability.
Technology was a major theme of the speech. Xi said China had become one of the world’s fastest-growing innovation economies. He pointed to progress in areas such as artificial intelligence, chip development, aerospace and military technology. These advances, he said, had lifted China’s scientific and technological strength to new heights.
Overall, Xi’s New Year messages aimed to reassure the country that China is moving forward steadily, with confidence in its economy, faith in technology and a clear sense of direction for the years ahead.
Yemen: Saudi-Allied Govt Targets UAE-Backed Separatists
Yemen’s Saudi-backed government launched an operation to take back military positions from the UAE-backed southern separatists on Friday and said it had reclaimed one of the largest military camps in Hadramout province.
The operation in Hadramout marks the latest escalation in Yemen, where a rift between Gulf powers Saudi Arabia and the United Arab Emirates, who back opposing sides, has been playing out since December.
Once the twin pillars of regional security, the two Gulf heavyweights have seen their interests diverge on everything from oil quotas to geopolitical influence.
Reclaiming Major Base
Hadramout’s Saudi-backed governor, Salem Ahmed Saeed al-Khunbashi, said in a statement on Friday that his forces had taken control of a military camp in al-Khasha’a, the largest and most important base in the province.
The governor had earlier said his forces were launching what he called a “peaceful” operation.
A senior official of the UAE-backed Southern Transitional Council told Reuters the operation had not been peaceful.
“Saudi Arabia knowingly misled the international community by announcing a peaceful operation that they never had any intention to keep peaceful,” Amr Al Bidh said in a statement.
“This was evidenced by the fact that they launched seven airstrikes minutes later,” he said.
Saudi Arabia did not immediately respond to a request for comment on the airstrikes.
It was unclear if there were any casualties.
Military Sites Targeted
Yemen’s Saudi-backed government said it had appointed Hadramout’s governor to take overall command of the “Homeland Shield” forces in the eastern province, granting him full military, security and administrative authority in what it said was a move to restore security and order.
“This is not a declaration of war,” the governor said in a speech on Yemen TV, adding that the move aims to prevent the use of camps to threaten security and to protect Hadramout from sliding into chaos.
The oil-producing Hadramout province borders Saudi Arabia, and many prominent Saudis trace their origins to it, lending it cultural and historical significance for the kingdom.
A spokesperson for the STC, Mohammed al-Naqeeb, said on Friday that forces were on full alert across the region and warned that it was ready to respond forcefully in a post on X.
The STC’s Bidh told Reuters that three of the airstrikes targeted the al-Khasha’a military camp.
Three Yemeni sources told Reuters armoured vehicles belonging to the Saudi-backed government had been moving towards the Khasha’a camp, which has the capacity to house thousands of troops and was taken over by the STC in December.
The UAE backs the STC, which seized large swathes of southern Yemen last month from the internationally recognised government, backed by Saudi Arabia, which in turn saw the move as a threat.
The UAE last week said it was pulling its remaining forces out of Yemen after Saudi Arabia backed a call for its forces to leave within 24 hours in one of the severest disagreements between the two Gulf oil powers to ever play out in public.
The move briefly eased tensions, but disagreements between the various groups on the ground in Yemen have persisted since then.
Saudi Arabia and the UAE are both major players in the OPEC oil exporters’ group, and any disagreements between them in Yemen or elsewhere could hamper consensus on oil output.
They and six other OPEC+ members meet online on Sunday, and OPEC+ delegates have said they will extend a policy of maintaining first-quarter production unchanged.
(with inputs from Reuters)
“Xi’s Rule Blocks Any Cross-Strait Peace”
China’s sustained military pressure on Taiwan reflects not just strategic signaling but deeper political constraints inside Beijing, according to Dr. Roger Chi-Feng Liu, Deputy Director of the Integrated Diplomacy Program at the DIMEs Center, Taiwan Think Tank.
Dr. Liu, who previously taught and conducted research in India for nearly eight years and is now an assistant professor at National Sun Yat-sen University, said the exercise—termed “Justice Mission 2025” by Beijing—was not a surprise. Taiwanese and US intelligence agencies were aware of the drills at least a week in advance, despite the absence of an initial public announcement
Speaking after the People’s Liberation Army’s latest exercises around Taiwan, Dr. Liu said prospects for lasting cross-strait peace remain limited under the current Chinese political system. Any meaningful de-escalation, he argued, would require fundamental political change in Beijing rather than tactical adjustments or confidence-building measures
The recent drills, described by the PLA as “Justice Mission 2025,” were not unexpected. Taiwanese and US intelligence agencies had advance warning of the exercise, despite the lack of an early public announcement. What distinguished the operation was proximity rather than scale. A PLA-designated target area in southern waters came within four nautical miles of Taiwan—its closest approach so far—though Chinese forces stayed outside Taiwan’s 24-nautical-mile territorial limit
“They are testing and moving closer every time,” Dr. Liu said, characterising the pattern as incremental escalation rather than preparation for immediate invasion
He linked the timing of the drills to two developments: recent US arms sales to Taiwan and statements by Japan’s new prime minister describing a Taiwan contingency as a Japanese contingency—moves Beijing appears intent on countering through calibrated pressure
Dr. Liu said Taiwan’s internal politics also shape its defence posture. The ruling Democratic Progressive Party lacks a legislative majority, allowing opposition parties to delay defence budgets by citing slow US weapons deliveries and unresolved problems with Taiwan’s indigenous submarine programme
Despite repeated PLA activity, Taiwanese society remains outwardly calm. Dr. Liu said most people do not expect an imminent invasion, even as the government strengthens civil resilience and energy stockpiles against blockade or quarantine scenarios.
On China’s long-term intent, Dr. Liu was blunt. Taiwan and China, he said, could only engage meaningfully if China’s political trajectory changed. Under Xi Jinping, Beijing prioritises regime control over reconciliation, leaving little room for durable peace across the Strait.
Watch closely—because the tactics Taiwan faces today echo across the Indo-Pacific, including India’s own strategic challenges.
Nvidia Rushes to Meet Surging Chinese Demand for H200 AI Chips
Nvidia is racing to boost production of its H200 artificial intelligence chips to meet soaring demand from Chinese technology firms and has approached contract manufacturer Taiwan Semiconductor Manufacturing Co (TSMC) to ramp up output, sources told Reuters.
Chinese companies have reportedly ordered more than 2 million H200 chips for 2026, while Nvidia currently holds only about 700,000 units in stock, two people familiar with the discussions said. A third source confirmed that Nvidia has asked TSMC to begin additional production in the second quarter of 2026, though the exact volume remains unclear.
The move underscores both the intensity of global demand for Nvidia’s AI chips and the supply pressures facing the industry. It also poses potential geopolitical risks, as Beijing has yet to approve imports of the H200, even after the U.S. government recently lifted restrictions on exports of the chip to China.
Balancing Supply and Political Risk
The U.S. Coast Guard’s decision to permit H200 sales subject to a 25% fee reversed the earlier export ban imposed by the Biden administration. But while Washington has given the green light, Chinese authorities have not yet decided whether to allow shipments, citing concerns about overreliance on foreign technology and its impact on the growth of the domestic semiconductor sector.
“Licensed sales of the H200 to authorised customers in China will have no impact on our ability to supply customers in the United States,” an Nvidia spokesperson said. “China is a highly competitive market with rapidly growing local chip suppliers. Blocking all U.S. exports undercut our national and economic security and only benefited foreign competition.”
TSMC declined to comment on the discussions, while China’s Ministry of Industry and Information Technology did not immediately respond to a request for comment.
Chinese Tech Giants Drive Demand
According to industry sources, most of the 2026 orders come from China’s leading internet and AI firms, which see the H200 as a major leap forward from current-generation processors. The chip part of Nvidia’s Hopper architecture uses TSMC’s 4-nanometre process and delivers about six times the performance of the H20, the downgraded version Nvidia had previously designed for the Chinese market.
Of Nvidia’s existing inventory, around 100,000 units are GH200 Grace Hopper superchips, combining the Grace CPU with the Hopper GPU architecture, while the rest are standalone H200 chips. Both types will be offered to Chinese buyers.
Pricing for Chinese clients is expected to average around $27,000 per chip, or roughly 1.5 million yuan for an eight-chip module. While this is higher than the 1.2 million yuan H20 module previously sold in China, analysts say buyers consider the H200’s performance-to-cost ratio attractive. It is also about 15% cheaper than comparable units sold on the grey market, which currently exceed 1.75 million yuan.
ByteDance, parent company of TikTok, reportedly plans to spend about 100 billion yuan on Nvidia chips in 2026 up from 85 billion yuan this year if Chinese regulators approve H200 imports, according to the South China Morning Post.
Global Supply Strains and Strategic Implications
If confirmed, the large-scale order would mark a major expansion of H200 production at a time when Nvidia is focusing on its newer Blackwell and upcoming Rubin chip lines. The company’s push to satisfy Chinese demand could exacerbate global supply shortages for AI processors, as data centre operators and cloud providers worldwide compete for limited inventory.
Analysts warn that Nvidia must strike a careful balance between maintaining its U.S. and European commitments and meeting Chinese orders. The regulatory uncertainty in China further complicates planning, with officials considering proposals that would require companies purchasing H200 chips to also buy a set ratio of domestically produced processors.
Despite the risks, the surge in demand from China underscores Nvidia’s dominance in the AI hardware market and highlights how political and economic pressures continue to shape the global semiconductor supply chain.
with inputs from Reuters
In 2026 India Will Seek To Balance The Turbulence Of 2025
The New Year, diplomatic sources say, is expected to be a period of intense leader-level engagement for India with Europe, the Americas, and the Global South.
Germany’s Chancellor Friedrich Merz is likely to kick off the diplomatic engagement when he lands in Delhi on January 12, the sources said, confirming that the visit will focus on defence (German submarines for India), expanding cooperation in green hydrogen, manufacturing and skilled workforce mobility.
Sources said Germany had recently announced new commitments amounting to “almost 1.3 billion euros, primarily in the form of concessional loans, across the key areas of climate and energy, sustainable urban development, green urban mobility, and sustainable management of natural resources”.
This was following the “successful conclusion” of high level official negotiations on development cooperation 2025 with India.
Later, on January 26, India’s Republic Day celebrations are expected to see European Commission President Ursula von der Leyen and European Council President António Costa. Their visit, officials said, would point to the long-pending India–European Union Free Trade Agreement reaching a “decisive stage”.
Ahead of an expected India-Arab Summit in New Delhi later in the year, officials from 22 Arab countries are coming to India for the 4th India-Arab Senior Officials Meeting (IASOM). The meeting is scheduled to take place on Jan 31, 2026.
AI Diplomacy
Delhi will host the Artificial Intelligence Impact Summit from February 15-20th, which is expected to bring heads of government and senior leaders from 15 to 20 countries, positioning India as a convenor on global AI governance, ethical innovation, and inclusive technological growth.
Among those expected to attend are French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni, and Spanish Prime Minister Pedro Sánchez, alongside leaders from the Indo-Pacific and the Global South.
Diplomatic sources say the presence of multiple European leaders reflects growing alignment with India’s push for human-centric AI frameworks, as well as commercial interest in India’s rapidly expanding digital economy.
Beyond policy discussions, the summit is expected to yield bilateral meetings focused on AI cooperation, semiconductor supply chains, defence technologies, and talent mobility.
Focus on Americas, Global South
March is expected to see intensified outreach to Latin America, with Brazilian President Luiz Inácio Lula da Silva having publicly stated his intention to visit India.
Talks are likely to focus on energy security, food supply chains, defence cooperation, and a substantive expansion of the India–MERCOSUR Preferential Trade Agreement, with more product lines expected to be included.
Uruguay’s top leadership is also expected in New Delhi with discussions likely to centre on cooperation in drones, satellite manufacturing, artificial intelligence and Antarctic scientific research.
Estonia’s President, Alar Karis, is expected to visit India in early 2026 following recent strong political engagements.
Canada, following the stabilisation of bilateral ties in 2025, is also expected to re-engage at the leadership level, with critical minerals, trade diversification, and nuclear energy cooperation on the agenda.
Trade Talks
Indian trade negotiators are aiming to convert the dense diplomatic calendar into economic outcomes. After concluding agreements with the UK, Oman and New Zealand in 2025, New Delhi is now prioritising progress with the European Union, Gulf Cooperation Council, Australia (upgrading ECTA to CECA), ASEAN, and the Eurasian Economic Union.
Officials say the early months of 2026 offer a narrow political window to advance these talks before domestic and international electoral cycles begin to complicate negotiations.
The urgency surrounding early 2026 diplomacy is rooted in the turbulence of 2025. Against this backdrop, Indian policymakers are approaching 2026 with tempered expectations. The emphasis, officials say, is on diversifying partnerships, reducing exposure to external shocks, and securing tangible outcomes rather than headline diplomacy alone.
France Plans Ban on Social Media for Under-15s and Mobile Phones in High Schools
France is preparing to ban children under the age of 15 from using social media platforms and to prohibit mobile phones in high schools from September 2026, local media reported on Wednesday. The proposals reflect growing public concern over the effects of social media and screen time on children’s mental health and behaviour.
According to Le Monde and France Info, President Emmanuel Macron’s government is expected to introduce draft legislation for legal and technical checks in early January. While Macron did not mention the initiative in his New Year’s Eve address, he pledged to “protect our children and teenagers from social media and screens.”
The presidential palace and the prime minister’s office declined to comment on the reports, but the move aligns with Macron’s repeated warnings that social media contributes to youth violence and social instability.
Extending Restrictions to High Schools
Mobile phones have been banned in France’s primary and middle schools since 2018. The new measure would extend this prohibition to high schools, where pupils aged 15 to 18 are currently allowed to use their phones outside class hours. Under the French education system, pupils aged 11 to 15 attend middle school.
France had already passed a law in 2023 requiring social media companies to obtain parental consent for users under 15 to create accounts. However, enforcement has faced obstacles due to difficulties verifying users’ ages and ensuring compliance across platforms.
If adopted, the new restrictions would mirror recent moves by Australia, which introduced a world-first national ban on social media access for children under 16 in December, covering platforms such as Facebook, Snapchat, TikTok and YouTube.
Macron’s Push for EU-Wide Regulation
President Macron has also called for broader regulation at the European Union level. In June, following a fatal stabbing at a school in eastern France, he urged the EU to establish a minimum age of 15 for accessing social media. The European Parliament echoed the call in November, urging member states to address the link between online exposure and rising adolescent mental health problems.
Despite such appeals, age restrictions remain a national prerogative within the EU, leading to varied rules across member states. Macron argues that consistent regulation would provide stronger protection and make enforcement easier across borders.
Political Context and Public Support
The legislative effort comes as Macron faces significant domestic challenges following the 2024 parliamentary elections, which resulted in a hung parliament and triggered one of France’s deepest political crises in decades. Nevertheless, the proposed social media restrictions could prove popular with voters.
A Harris Interactive survey conducted in 2024 showed that 73% of respondents supported banning social media access for children under 15. Analysts say the policy could help Macron regain some political footing by focusing on a widely shared concern about the digital welfare of young people.
As the debate unfolds, France joins a growing number of countries rethinking how to regulate minors’ access to social media balancing the benefits of connectivity with the urgent need to protect children’s mental health and safety.
with inputs from Reuters
Hong Kong: 21 Arrested For Corruption In Building Renovation Crackdown
Hong Kong has stepped up a crackdown on corruption linked to building renovation following a fire in late November that ripped through seven high-rise towers and killed more than 160 people.
John Lee, the city’s leader, last month set up an independent committee to investigate the fire and the construction industry, and determine whether there was any bid-rigging in the award of contracts.
The Independent Commission Against Corruption (ICAC) said in a statement that it conducted enforcement operations last week against a triad-linked corruption syndicate associated with building renovation.
The 21 arrested included middlemen, project consultants, project contractors, and members of the owners’ corporation of the two housing estates, the agency added.
In one of the estates, the contractor involved was suspected of bribing the project consultant and some members of the owners’ corporation to obtain a project contract worth HK$33 million ($4.24 million).
In the other estate, the middlemen allegedly collected instruments of proxy, or authorisation tickets, from homeowners “by corrupt means” in an attempt to manipulate votes and win future renovation contracts. It did not elaborate.
“Building maintenance is closely related to the public and involves multiple stakeholders. The ICAC has always attached great importance to corruption in building maintenance,” the statement said.
The two estates targeted in last week’s operation were in the Kwun Tong district in eastern Kowloon and not related to Wang Fuk Court, the site of the fire that broke out on November 26.
The ICAC has arrested at least 11 people in a corruption probe into renovation work at Wang Fuk Court.
Residents reacted with anger to the inferno, which took nearly two days to extinguish. Authorities have said substandard building materials used in renovating the high-rise blocks fuelled the fire.
(with inputs from Reuters)
Kim Jong Un’s Daughter Ju Ae Appears at Mausoleum Amid Succession Speculation
North Korean leader Kim Jong Un’s daughter, Ju Ae, who is widely seen as a potential heir, made her first public visit to the Kumsusan Palace of the Sun, state media photographs showed on Friday. The visit, conducted on January 1 alongside her parents, marked a significant new step in Ju Ae’s growing public prominence and further fuelled speculation about her role in North Korea’s dynastic succession.
State media images released by the Korean Central News Agency (KCNA) showed Ju Ae walking between Kim Jong Un and his wife, Ri Sol Ju, as they paid their respects to Kim’s grandfather and father founding leader Kim Il Sung and former leader Kim Jong Il. Senior officials also attended the ceremony at the Kumsusan mausoleum, where the bodies of both late leaders lie in state.
Growing Signs of Succession Preparation
Analysts say Ju Ae’s inclusion in the high-profile visit may signal her father’s calculated move to introduce her more formally to the North Korean elite and public ahead of the upcoming ruling Workers’ Party Congress. Cheong Seong-chang, vice president at the Sejong Institute, said the appearance was “a symbolic gesture” pointing to possible steps to formalise her future role at the meeting.
Over the past three years, Ju Ae has made increasingly visible appearances in official events from military parades to state banquets often positioned at her father’s side. South Korea’s intelligence agency and several North Korea watchers have interpreted these public outings as part of Kim’s long-term effort to legitimise her as his successor in a fourth-generation leadership line.
Building the Image of a “Stable Family”
Hong Min, a senior analyst at South Korea’s Korea Institute for National Unification, noted that Pyongyang has been using these family appearances to project stability. “By showing Kim’s wife and daughter together at key events, North Korea is portraying an image of a stable, confident leadership,” he said.
Ju Ae, believed to have been born in the early 2010s, also attended this year’s New Year celebrations and accompanied her father on a September trip to Beijing her first known overseas appearance. North Korea has not disclosed her age, but observers estimate she is about 13 years old.
Questions Remain Over Formal Succession
Despite growing attention, Seoul’s Unification Ministry cautioned against premature assumptions about Ju Ae’s status. A ministry spokesperson declined to comment directly, while another official said it was “too early to say she is a successor,” noting her age and lack of any official position.
Hong Min echoed that assessment, suggesting Kim’s other children could still play undisclosed roles. “It’s practically impossible to publicly designate Kim Ju Ae, who is believed to have just turned 13, as the successor when she’s not even old enough to join the Workers’ Party,” he said.
Kim’s visit to the Kumsusan mausoleum reinforced his family’s dynastic continuity a hallmark of North Korea’s political identity since its founding. Whether Ju Ae’s appearance was symbolic or substantive remains uncertain, but her steady rise in visibility suggests that succession planning may already be underway behind the scenes.
with inputs from Reuters
China Imposes Tax On Condoms, Contraceptives To Spur Birth Rate
China removed a three-decade-old tax exemption on contraceptive drugs and devices from January 1 in new steps to spur a flagging birth rate.
Condoms and contraceptive pills now incur a value-added tax of 13%, the standard rate for most consumer goods.
The move comes as Beijing struggles to boost birth rates in the world’s second-largest economy. China’s population fell for a third consecutive year in 2024, and experts have cautioned that the downturn will continue.
China has now exempted childcare subsidies from personal income tax and rolled out an annual childcare subsidy last year, following a series of “fertility-friendly” measures in 2024, such as urging colleges and universities to provide “love education” to portray marriage, love, fertility, and family in a positive light.
Top leaders again pledged last month at the annual Central Economic Work Conference to promote “positive marriage and childbearing attitudes” to stabilise birth rates.
One-Child Policy
China’s birth rates have been falling for decades as a result of the one-child policy China implemented from 1980 to 2015, and rapid urbanisation.
The high cost of childcare and education, as well as job uncertainty and a slowing economy, have also discouraged many young Chinese from getting married and starting a family.
The CNN reports that January 1 marks 10 years since China scrapped its notorious “one-child” policy, after the government realized that a falling birth rate threatened to derail the growth of the world’s second-largest economy.
But the landmark change – and a raft of other measures to encourage couples to have more kids – have failed to boost the population.
Chinese leader Xi Jinping has evoked the need for “population security” and made the “development of a high-quality population” a national priority. Analysts expect more policies or incentives to support births and marriage in the year ahead.
But many in China say boosting birth rates means addressing core issues like high youth unemployment, the high cost of raising children, and what’s seen as an unfair burden of child-raising on women, reports CNN.
(with inputs from Reuters)