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How One Chinese City Reversed Its Birth Rate Through Incentives and Pressure

While China’s population has declined for three consecutive years—with 2025 likely marking the fourth—one small city has managed to buck the national trend. Tianmen, in central Hubei Province, recorded about 7,217 births in 2024, a 17 percent increase from the previous year. The unusual surge has led Chinese state media to champion what they call the “Tianmen Model,” even drawing a Le Monde correspondent to the city to uncover its “fertility code.”

China now faces a steep demographic challenge. The average Chinese woman has just one child, placing the nation in the United Nations’ “ultra-low fertility” category. As Le Monde observed, the roots of this crisis lie in Beijing’s decades-long one-child policy, enforced from 1980 to 2015. Although authorities scrapped the restriction a decade ago and allowed up to three children per couple in 2021, the government has yet to acknowledge the lasting damage caused by its earlier policies.

Today, the picture has flipped completely. Where families were once punished with heavy fines for exceeding birth limits, local governments now offer tax breaks, housing support, and cash subsidies. Health workers who once enforced abortions now go door-to-door encouraging couples to have babies. Across China, cities compete to boost fertility rates, with local officials’ performance reviews now including birth statistics.

Leading this charge is Tianmen Party Secretary Ji Daoqing, who calls his city’s generous incentives a “capital investment.” The city provides newlyweds with housing subsidies worth about €7,200, monthly stipends of €100 for second children until age three, and €120 per month for third children. One mother told reporters she registered her newborn in Tianmen—despite living 700 kilometers away in Suzhou—just to qualify for the benefits. A local teacher added that having more children has even become tied to job prospects, with school principals reminding staff to “plan for a second child.”

The irony is striking. One woman recalled how her mother-in-law was forced to undergo an eight-month abortion decades ago to prevent her husband from losing his civil service job. Another grandmother remembered family planning officials in the 1990s taking her young son away for a week until she could return from her textile factory job in Guangzhou to prove she wasn’t pregnant again.

As one mother in Tianmen put it, “The policy has changed.” Once infamous for harsh enforcement of the one-child rule, Tianmen has now become a symbol of China’s desperate push to reverse its demographic decline.

Source: Radio France International, November 1, 2025
https://rfi.my/C96R

China’s Housing Market Deepens Historic Decline Despite Policy Support

China’s property sector continues to spiral downward, with fresh data showing record declines across development investment, home sales, and land revenue—underscoring the depth of the country’s prolonged real estate slump. Despite a raft of government support measures, the market shows little sign of stabilizing, prompting renewed calls from policymakers for stronger intervention.

According to the National Bureau of Statistics, real estate development investment fell 13.9 percent year-on-year in the first three quarters of 2025 to 6.77 trillion yuan (about $950 billion). Residential investment dropped 12.9 percent to 5.20 trillion yuan ($730 billion), marking the steepest decline since 2021. The indicator has remained negative since April 2022 and returned to double-digit contraction in April 2025.

Land sale revenues further highlight the market’s freeze. After plunging 44 percent from the 2021 peak to 4.87 trillion yuan ($683 billion) in 2024, revenues fell again to 2.23 trillion yuan ($313 billion) in the first three quarters of this year.

Sales of new commercial housing also continued to slide. The total floor area sold decreased 5.5%, while sales revenue fell 7.9% to 6.30 trillion yuan ($884 billion). Both measures have been in decline since 2021, and the downturn—after briefly narrowing last year—accelerated again from April 2025, reaching the widest margins of the year.

The price weakness has now spread across the entire market. September marked the first month in 2025 when used-home prices fell in all 70 cities tracked by the government. Even major cities such as Beijing, Shanghai, and Shenzhen—where authorities introduced rescue measures in August—saw continued price declines.

Yin Yanlin, vice chairman of the National Committee’s Economic Committee and former deputy director of the Central Financial and Economic Affairs Commission Office, warned that current policies remain inadequate. He urged shifting the government’s focus from “suppressing price increases” to “supporting price increases,” emphasizing that real estate remains the biggest drag on fixed-asset investment and could serve as a vital link between investment and household consumption.

Source: Central News Agency (Taiwan), October 23, 2025
https://www.cna.com.tw/news/acn/202510230256.aspx

Lianhe Zaobao: China’s Manufacturing PMI Continued to Contract in October

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that data released by China’s National Bureau of Statistics showed the Chinese manufacturing PMI fell to 49.0 in October from 49.8 in September, below expectations. This marks the lowest point in the past six months, and the seventh consecutive month that the manufacturing sentiment indicator has contracted.

The production sub-index fell 2.2 percentage points from the previous month to 49.7, indicating a further slowdown in manufacturing production. The new orders sub-index dropped to 48.8, the largest decline since 2023, indicating a significant decrease in market demand. Among the new orders, new export orders fell sharply by 1.9 percentage points to 45.9, reflecting a weakening of both domestic and external demand.

Experts believe that the main reason for the manufacturing PMI decline is the drop in exports, which may reflect the waning of the “rush to export” effect in the early months of 2025. Besides weak market demand dragging down production, the implementation of anti-involution measures in some industries could also constrain capacity release. Despite the trade truce agreement reached between China and the U.S., China still needs more policy support to boost domestic demand and cope with internal and external uncertainties.

Source: Lianhe Zaobao, October 31, 2025
https://www.zaobao.com.sg/finance/china/story20251031-7750511

From Designer Dreams to Civil Service: China’s Youth Navigate Economic Downturn and Age Discrimination

China’s economic slowdown has reshaped a generation’s career ambitions. Once drawn to private-sector opportunities, many young professionals are now turning toward the stability of government jobs amid long working hours, shrinking prospects, and the pervasive “35-year-old crisis.”

A decade ago, Mu Cheng graduated from a top Shanghai university dreaming of becoming a designer. The booming economy offered endless possibilities, and private firms were seen as places for creativity and growth. But after the pandemic, instability hit hard—companies folded, salaries fell, and overtime became relentless. Walking alone through Shanghai’s empty financial district near midnight, Mu questioned whether her sacrifices were worth it.

Age discrimination deepened her worries. The “35-year-old crisis,” reinforced by public job postings limiting applicants to under 35, has spread across industries. Private companies increasingly replace older employees with younger, cheaper hires. A Shanghai economist notes that many professionals in their late thirties now face unemployment, often resorting to gig work to survive.

After years of career turbulence, Mu pursued graduate studies abroad but returned disillusioned with the private sector. Like millions of Chinese youth, she began preparing for civil service exams, seeking security over ambition. The once-praised “wolf spirit” of China’s younger generation has largely given way to a “lying-flat” mindset reflecting diminished economic expectations.

Now 34, Mu regrets her early career choices but remains focused on landing a government position. Although the civil service age limit recently rose from 35 to 38, her designer dreams have become side projects. For many like her, stability has replaced passion as China’s economy redefines what success means for its youth.

Source: Central News Agency (Taiwan), October 28, 2025
https://www.cna.com.tw/news/acn/202510280269.aspx

Chinese Display Panel Makers Struggle with Profitability Despite Expanding Market Share

Chinese display panel manufacturers have steadily increased their global market presence, intensifying competition with South Korean rivals. However, most continue to struggle with weak profitability, with only BOE managing to avoid sustained losses, according to a recent report by market research firm Omdia.

Among the world’s top ten panel makers over the past five years, Samsung Display was the only company to record a double-digit average net profit margin, achieving 12.19 percent. Among Chinese firms, BOE was the sole player with a positive average margin of 3.94 percent, while all other major Chinese manufacturers reported losses. EverDisplay Optronics, based in Shanghai, posted an average net profit margin of negative 55.05 percent, and Visionox recorded negative 45.34 percent. Even South Korean competitor LG Display struggled, reporting an average margin of negative 5.04 percent, weighed down by weakness in the large-format OLED segment.

The first half of this year brought little change. Samsung Display maintained profitability with margins of 10.37 percent and 6.84 percent in the first and second quarters, respectively. In contrast, BOE and Tianma hovered between zero and four percent, while Visionox and EverDisplay continued to post double-digit losses.

Industry analysts attribute the persistent low profitability of Chinese panel makers primarily to their dependence on low-cost, mass-market products, in stark contrast to South Korean manufacturers that have already shifted toward high-end OLED panels. The price war driven by aggressive Chinese competition has further intensified market pressures and eroded margins across the industry.

Experts suggest that Korean companies should resist being drawn into this race to the bottom and instead focus on strategic investments to open new markets and capture high-margin growth opportunities.

Source: Yonhap News Agency (South Korea), October 26, 2025
https://cn.yna.co.kr/view/ACK20251026000100881

Lianhe Zaobao: BMW Lowers Full-Year Earnings Forecast as China Sales Continue to Slump

Singapore’s leading Chinese-language newspaper Lianhe Zaobao recently reported that German automaker BMW AG has cut its full-year earnings forecast amid continued weakness in the Chinese market, higher subsidies for local dealers, and rising tariff-related costs.

BMW now expects its group pre-tax profit to decline slightly this year compared with 2024, having previously projected it would remain unchanged. The automaker also revised its automotive segment’s operating profit margin to between 5 percent and 6 percent. In addition, BMW lowered its free cash flow forecast for the year to about €2.5 billion, down from an earlier projection of up to €5 billion. The company attributed the revision primarily to increased payments to dealers, particularly in China.

German luxury carmakers such as Mercedes-Benz and BMW are facing mounting headwinds in China. Mercedes-Benz’s deliveries in the country plunged 27 percent in the third quarter, while its retail sales in July dropped more than 40 percent month-on-month — marking the first time in nearly five years that its monthly sales fell below 27,000 vehicles.

Source: Lianhe Zaobao, October 8, 2025
https://www.zaobao.com.sg/realtime/china/story20251008-7632427

China Denies Its New Rare Earth Export Controls Target Pakistan

China announced new rare earth export restrictions on October 9, requiring foreign manufacturers to obtain Chinese export licenses if their products contain or are made with Chinese-origin rare earth materials or technologies – even if no Chinese companies are directly involved. Under the new rules, any foreign-made items that include Chinese-produced rare earths making up 0.1% or more of their value, or that use Chinese rare earth–related technologies in extraction, smelting, or recycling, must secure a dual-use export permit from China’s Ministry of Commerce.

At an October 13 press conference, Foreign Ministry spokesperson Lin Jian dismissed reports claiming that the new rules were aimed at Pakistan for allegedly using Chinese technology and equipment to export rare earths to the U.S. Lin emphasized that China and Pakistan are “all-weather strategic cooperative partners” with strong mutual trust and close coordination on key issues. He noted that Pakistan had assured China its cooperation with the U.S. would not harm Chinese interests. He said that the “rare earth samples” presented to the U.S. were actually gemstone samples purchased by Pakistani staff. Lin said the related media reports were unfounded, speculative, and intended to sow discord between the two countries.

Sources:
1. Center for Security and Emerging Technology, Georgetown University, October 9, 2025
https://cset.georgetown.edu/publication/mofcom-notice-2025-61/
2. People’s Daily, October 13, 2025
https://world.people.com.cn/n1/2025/1013/c1002-40581251.html

China’s Special Port Fee on U.S. Vessels Takes Effect on October 14

Huanqiu Times reported that on October 14, China’s Ministry of Transport issued the “Measures for Collecting Special Port Fees on U.S. Vessels,” consisting of ten articles and effective immediately upon publication. The following are Articles 2 through 5.

Article 2: Foreign vessels engaged in international maritime transport that dock at Chinese ports must pay the Special Port Fee for Vessels if they meet any of the following conditions:

  1. The vessel is owned by U.S. enterprises, organizations, or individuals;
  2. The vessel is operated by U.S. enterprises, organizations, or individuals;
  3. The vessel is owned or operated by enterprises or organizations in which U.S. entities directly or indirectly hold 25% or more of the equity (including voting rights or board seats);
  4. The vessel is registered under the U.S. flag;
  5. The vessel was built in the United States.

Vessels built in China under conditions (1) – (4) above are exempt from the fee. Empty vessels entering Chinese shipyards solely for repairs, as well as other vessels granted exemptions upon review, are also exempt.

Article 3: The specific fee rates are as follows (rounded up to the nearest gross ton):

  1. From October 14, 2025, RMB 400 per gross ton;
  2. From April 17, 2026, RMB 640 per gross ton;
  3. From April 17, 2027, RMB 880 per gross ton;
  4. From April 17, 2028, RMB 1,120 per gross ton.

Each vessel is subject to the special port fee for no more than five voyages per year, with April 17 marking the start of each annual billing cycle.

Article 4: The fee shall be collected by the maritime administration authority of the port where the vessel docks and managed or used according to relevant national regulations.

Article 5: If a vessel docks at multiple Chinese ports during the same voyage, the special port fee is payable only at the first port of call. For vessels making more than five voyages to Chinese ports in a year, the fee applies only to the first five voyages, with subsequent voyages exempt upon proof of prior payments.

Source: Huanqiu Times, October 13, 2025
https://world.huanqiu.com/article/4OiMfb2DneG