Business
China’s plan to boost birth rates with condom tax and cheaper childcare
Osmond Chia,Business reporterand
Yan Chen,BBC News Chinese
Getty ImagesChinese people will pay a 13% sales tax on contraceptives from 1 January, while childcare services will be exempt, as the world’s second-largest economy tries to boost birth rates.
An overhaul of the tax system announced late last year removes many exemptions that were in place since 1994, when China was still enforcing its decades-long one-child rule.
It also exempts marriage-related services and elderly care from value added tax (VAT) – part of a broader effort that includes extending parental leave and issuing cash handouts.
Faced with an ageing population and sluggish economy, Beijing has been trying hard to encourage more young Chinese people to marry, and couples to have children.
Official figures show that China’s population has shrunk three years in a row, with just 9.54 million babies born in 2024. That is around half of the number of births recorded a decade ago, when China started to ease its rules on how many children people could have.
Still, the tax on contraceptives, including condoms, birth control pills and devices, has sparked concern about unwanted pregnancies and HIV rates, as well as ridicule. Some people point out that it would take a lot more than pricey condoms to persuade them to have children.
As one retailer urged shoppers to stock up ahead of the price hike, a social media user joked: “I’ll buy a lifetime’s worth of condoms now.”
People can tell the difference between the price of a condom and that of raising a child, wrote another.
China is one of the most expensive countries in which to raise a child, according to a 2024 report by the YuWa Population Research Institute in Beijing. Costs are pushed up by school fees in a highly competitive academic environment, and the challenge women have juggling work and parenting, the study said.
The economic slowdown, partly brought on by a property crisis that has hit savings, has left families, and especially young people, feeling uncertain or less confident about their future.
“I have one child, and I don’t want any more,” says 36-year-old Daniel Luo, who lives in the eastern province of Henan.
“It’s like when subway fares increase. When they go up by a yuan or two, people who take the subway don’t change their habits. You still have to take the subway, right?”
He says he is not concerned by the price hike. “A box of condoms might cost an extra five yuan, maybe 10, at most 20. Over a year, that’s just a few hundred yuan, completely affordable.”
Getty ImagesBut cost might be a problem for others, and that’s what worries Rosy Zhao, who lives in the city of Xi’an in central China.
She says making contraception, which is a necessity, more expensive could mean students or those struggling financially “take a risk”.
That would be the policy’s “most dangerous potential outcome”, she added.
Observers appear divided on the aim of the tax overhaul. The idea that a tax hike on condoms will impact birth rates is “overthinking it”, says demographer Yi Fuxian from the University of Wisconsin-Madison.
He believes Beijing is keen to collect taxes “wherever it can” as it battles a housing market slump and growing national debt.
At nearly $1tn (£742bn), China’s VAT revenue made up close to 40% of the country’s tax collection last year.
The move to tax condoms is “symbolic” and reflects Beijing’s attempts to encourage people to lift China’s “strikingly low” fertility numbers, said Henrietta Levin from the Center for Strategic and International Studies.
What is also hampering efforts, she adds, is that a lot of the policies and subsidies will have to be implemented by indebted provincial governments – and it’s unclear if they can spare sufficient resources.
China’s approach to urging people to have children also risks backfiring if people feel the government is being “too intrusive” about what is deeply personal choice, she said.
Recently there have been media reports that women in some provinces have received calls from local officials asking about their menstrual cycles and plans to have children. The local health bureau in Yunnan province said such data was needed to identify expectant mothers.
But this has not helped the government’s image, Ms Levin said. “The [Communist] party can’t help but insert itself into every decision that it cares about. So it ends up being its own worst enemy in some ways.”
Getty ImagesObservers and women themselves say the country’s male-dominated leadership fails to understand the social changes underpinning these broader shifts, which are not exclusive to China.
Countries in the West and even those in the region, such as South Korea and Japan, have been struggling to lift birth rates as their population ages.
Part of the reason is the burden of childcare, which disproportionately falls on women, research shows. But there are also other shifts, such as a decline in marriage and even dating.
China’s measures miss the real problem: the way young people interact today, which increasingly avoids genuine human connections, Mr Luo from Henan said.
He points to rising sales of sex toys in China, which he believes is a sign that “people are just satisfying themselves” because “interacting with another person has become more of a burden”.
Being online is easier and more comforting, he says, as “the pressure is real”.
“Young people today deal with way more stress from society than people did 20 years ago. Sure, materially they’re better off, but the expectations placed on them are much higher. Everyone’s just exhausted.”
Business
New norms for NH & bridge works: Longer timelines, realistic deadlines – The Times of India
New Delhi: In a major change in policy, govt has increased the time allowed for construction of 6-10 km-long bridges across rivers such as Ganga and Brahmaputra to six years and for 2.5-6 km-long bridges on Mahanadi and Godavari to five years. The timelines have been revised from the current 24-30 months.Similarly, the construction period has been fixed at two years for national highway projects costing up to Rs 500 crore, 30 months for Rs 500-1,500 crore projects, and three years for works costing over Rs 1,500 crore.The change in the ‘normative construction period’ has been made after a gap of 13 years, learning from past experience of how the average time taken for completion of NH projects has been over four years against the standard timeline of 2.5-3 years. The revised timeline for construction will be applicable for all NH projects to be bid out from May 6.In a circular, the road transport ministry said present guidelines — issued in 2013 — are derived from a legacy linear model that does not explicitly account for voluminous earthwork, leading to unrealistic construction period and resulting in additional cost and risk.“Therefore, a need was felt to revise the existing guidelines based on scientific analysis, understanding of completed projects, and prescribe a realistic construction period for civil works at DPR and bid invitation stage,” the ministry said. It added that the new norm will improve predictability in completion of projects, reduce disputes, enhance value and quality of NHs, for realistic and bankable bids, better quality outcomes and improved investor confidence.An additional six months time has been provisioned in the new norms for critical projects which involve multiple flyovers, tunnels or elevated structures. Similarly, an addition of 12 months has been provisioned for projects that involve cutting and slope stabilisation in hilly states.
Business
JPMorgan CEO Jamie Dimon in annual letter cites risks in geopolitics, AI and private markets
JPMorgan Chase CEO Jamie Dimon is calling for a broad recommitment to American ideals as his bank navigates geopolitical uncertainty, a teetering economy and the revolutionary impact of artificial intelligence.
Dimon in his annual letter to shareholders, published Monday, noted the country’s 250th anniversary as “the perfect time to rededicate ourselves to the values that made this great nation of ours — freedom, liberty and opportunity.”
“The challenges we all face are significant. The list is long but at the top are the terrible ongoing war and violence in Ukraine, the current war in Iran and the broader hostilities in the Middle East, terrorist activity and growing geopolitical tensions, importantly with China,” Dimon said. “Even in troubled times, we have confidence that America will do what it has always done — look to the values that have defined our singular nation and sustained our leadership of the free world.”
Dimon, the longtime leader of the world’s largest bank by market cap, is among the most outspoken of U.S. corporate leaders. His annual letter offers not only a matter of record for his firm’s performance, but also sweeping perspectives on the global state of affairs.
In Monday’s letter, Dimon noted headwinds including global conflicts, persistent inflation, private market upheaval and what he called “poor bank regulations.”
Dimon said that while regulations like those put in place after the 2008 financial crisis “accomplished some good things … they also created a fragmented, slow-moving system with expensive, overlapping and excessive rules and regulations — some of which made the financial system weaker and reduced productive lending.”
He specifically cited negative consequences of capital and liquidity requirements, the current construction of the Federal Reserve’s stress test and a “badly handled” process at the Federal Deposit Insurance Corp.
Dimon also said JPMorgan’s reaction to revised proposals for Basel 3 Endgame and a global systemically important bank, or GSIB, surcharge — issued by U.S. regulators last month — were “mixed.”
“While it was good to see that the recent proposals for the Basel 3 Endgame (B3E) and GSIB attempted to reduce the increase in required capital from the 2023 proposals, there are still some aspects that are frankly nonsensical,” Dimon said.
The CEO said with the aggregate proposed surcharges of about 5%, the bank would need to hold “as much as 50% more capital across the vast majority of loans to U.S. consumers and businesses when compared with a large non-GSIB bank for the same set of loans.”
“Frankly, it’s not right, and it’s un-American,” he said.
On trade and geopolitics
Dimon identified geopolitical tensions as the primary risk facing his bank, namely the wars in Ukraine and Iran and their impacts on commodities and global markets — deeming war “the realm of uncertainty.”
“The outcome of current geopolitical events may very well be the defining factor in how the future global economic order unfolds,” he said. “Then again, it may not.”
He also cited a “realignment of economic relations in the world” brought on by U.S. trade policy. U.S. President Donald Trump has made tariffs a signature policy of his second term in office, introducing higher duties on dozens of trade partners and import categories.
“The trade battles are clearly not over, and it should be expected that many nations are analyzing how and with whom they should create trade arrangements,” Dimon said. “While some of this is necessary for national security and resiliency, which are paramount, it is hard to figure out what the long-term effects will be.”
On private markets
Dimon also spoke to recent upheaval in the private markets, as fears around loans made to software firms spur massive redemption requests at private credit funds.
“By and large, private credit does not tend to have great transparency or rigorous valuation ‘marks’ of their loans — this increases the chance that people will sell if they think the environment will get worse — even if actual realized losses barely change,” Dimon said.
The executive added that actual losses are already higher than they should be relative to the environment.
“However this plays out, it should be expected that at some point insurance regulators will insist on more rigorous ratings or markdowns, which will likely lead to demands for more capital,” he said.
On AI
Dimon reiterated Monday that the pace of AI adoption is unlike any technology that came before it. He said while its implementation will be “transformational,” it remains to be seen how the AI revolution will unfold.
“Overall, the investment in AI is not a speculative bubble; rather, it will deliver significant benefits. However, at this time, we cannot predict the ultimate winners and losers in AI- related industries,” Dimon said.
“We will not put our heads in the sand. We will deploy AI, as we deploy all technology, to do a better job for our customers (and employees),” he wrote.
JPMorgan has been at the forefront of Wall Street firms introducing AI at every level of its business. Last year, JPMorgan Chief Analytics Officer Derek Waldron gave CNBC an early demonstration into how it’s using agentic AI to speed up work and improve results for customers and shareholders.
In February, Dimon said AI was reshaping JPMorgan’s workforce and that the bank had “huge redeployment plans” for employees.
“We have focused on some of the ‘known and predictable’ and some of the ‘known unknown’ events,” he said. “But huge technological shifts like AI always have second- and third-order effects as well that can deeply impact society. … We should be monitoring for this kind of transformation, too.”
— CNBC’s Leslie Picker and Ritika Shah contributed to this report.
Business
Gold price rises up Rs1,100 per tola in Pakistan – SUCH TV
The prices of gold increased in the local market on Monday, with 24-karat gold per tola rising by Rs1,100 to settle at Rs491,462 compared to Rs490,362 on the previous trading day, according to rates issued by the All Pakistan Sarafa Gems and Jewellers Association.
Similarly, the price of 10 grams of 24-karat gold increased by Rs943 to Rs421,349 from Rs420,406, whereas 10 grams of 22-karat gold went up by Rs864 to Rs386,250 against Rs385,386.
In the international market, the price of gold increased by $11 to $4,687 per ounce from $4,676.
Meanwhile, the price of silver per tola decreased by Rs 50 to Rs 7,744 from Rs 7,794, while the price of 10 grams of silver declined by Rs 43 to Rs 6,639 from Rs 6,682.
The price of silver in the international market also decreased by $0.50 to $72.60 per ounce from $73.10.
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