James Kynge

And actually, if you look at the context around this, it really does look like this is an intentional move to boost the number of kids being born in China.

It will end a 33-year tax exemption

on contraceptives that was first introduced under China's one-child policy.

And conversely, while they're putting taxes on contraceptives, they're taking taxes off matchmaking services.

So it looks to me like this is all of a package.

It looks to me like basically China is going as full speed ahead as possible to get women to have more kids.

And...

I think the reasons for that are so abundantly clear.

And Alice, you have many friends in China.

You will know the stories there really well.

But just the very stark statistic at the top is that China's fertility rate is now about one birth per woman.

That was in 2024.

That's far below the replacement level of 2.1.

It's not actually the very lowest in the world.

Because I think that dubious distinction goes to either Macau or South Korea.

But it is very close to the lowest birth rate in the world.

What are you hearing, Alice?

I mean, you must have heard several stories from your friends in China about why people are not having babies and the government efforts to get them to have babies.

Yeah, I'm with you, Alice.

I don't think this tax change is going to work either.