Liang Jianzhang Proposes Child Benefits: ¥3,000 Monthly Until Age 18, Tax and Social Security Reductions for Parents

In a move that’s sure to ignite further debate on China’s demographic challenges, Ctrip CEO James Liang has once again weighed in on the critical issue of childbearing, framing it as a net positive for the nation’s future. Speaking on Tuesday, Liang presented a multifaceted argument that goes beyond the individual family unit, positioning children as a vital investment for the long-term health and prosperity of the country.

“From a national perspective,” Liang stated, “children represent far more hope than burden. Their development is inextricably linked to the nation’s trajectory and will ultimately yield returns that significantly outweigh the initial investments in areas like education.”

He delved further, analyzing the issue from both familial and generational viewpoints, ultimately advocating for policies that encourage larger families.

Liang’s primary recommendation centers on a system of financial incentives tied directly to the number of children a family has. His specific policy suggestions include:

First, a cash subsidy program: Families would receive a monthly stipend of 1,000 yuan for each child, 2,000 yuan for a second child, and 3,000 yuan for the third child and beyond, continuing until the child reaches the age of 16 or 18.

Second, targeted tax relief: Two-child families would receive a 50% reduction in both personal income tax and social security contributions, while families with three or more children would be fully exempt (with a potential upper limit on the subsidy for high-income families).

Third, housing subsidies: These would take the form of mortgage interest rebates. For example, a two-child family could have 50% of their mortgage interest subsidized, while for a family with three or more children, the entirety of the interest could be covered (again, subject to an upper limit).

Acknowledging the urgent need to stimulate domestic consumption within China’s economy, Liang also proposed a lump-sum cash payment of 100,000 yuan per child. He emphasized that boosting the birth rate is a complex endeavor that requires a holistic approach, including measures like childcare facility expansion and educational reforms. However, he believes that direct financial assistance to families remains the most immediate and impactful strategy.