China’s population crisis can be solved only by printing trillions of yuan to boost birth rate, prominent economist claims

Controversial comments by Ren Zeping suggest that US$314 billion would help add 50 million kids over a decade, in part by relying on older Chinese women to give birth

But demographers and state media throw cold water on Ren’s idea, warning of inflation risks and pointing to failed attempts in other countries

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Prominent economist Ren Zeping has presented a controversial solution to China’s low birth rate and rapidly ageing population. Photo: Weibo

Published: 9:30pm, 11 Jan 2022

One of China’s most high-profile economists says the central bank should print 2 trillion yuan (US$314 billion) to help boost low fertility rates – a controversial suggestion that has sparked widespread discussion.

Ren Zeping, China Evergrande Group’s former chief economist, offered his solutions to China’s low birth rate and rapidly ageing population, in an article published on Monday.

“The central bank [should] print an extra 2 trillion yuan to encourage society to have 50 million more kids in 10 years,” Ren said, adding that the money would be roughly 2 to 3 per cent of the country’s gross domestic product (GDP).

“This can solve China’s low-birth and ageing-population problems and energise the future without burdening people, companies and local governments. Based on our studies, this is the only, and the most practical, solution.”

He also urged China to establish the fund as quickly as possible, so older women who remain fertile can take advantage of it.

“The reason is simple,” Ren said. “People born between 1975 and 1985 are still conditioned to believe that more children are a blessing, while people born after the 1990s are not even willing to get married, let alone have two or three children.”

His urgings came as the world’s second-largest economy has been grappling with record low birth rates and a growing number of women increasingly reluctant to get married or have children.

In 2020, China’s births fell by 18 per cent from 2019, marking a near six-decade low. Some regions recorded births falling by more than 10 per cent.