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(Op-Ed) Not All About the Money: Why the One Child Generation Aren’t Keen on Having More Babies

The ‘Two Child Policy’ has not led to a baby boom, but are the costs to blame?

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China’s quest for more babies is a hot topic in the media recently. News reports generally explain the country’s declining birth rates through an economic lens. But by ignoring the social and historical background that has shaped the ways Chinese young parents think about family life today, they miss the essential point, Frankie Huang argues in this op-ed contribution for What’s on Weibo.

 

Recently, various proposed measured aimed at encouraging young Chinese couples to have more children are making headlines, from a ‘maternity fund’ tax for the childless, to a rumored Third Child Policy.

News reports often interpret China’s low birth rates through an economic lens, identifying costs as the determining factor in people’s decision to postpone a second child, or eschew one entirely.

But what’s missing from this picture is the crucial background factor that lays the foundation to how young Chinese parents dimensionalize family life, shaped by their own childhood.

 

During Mao’s reign, policies and propaganda directed citizens to have more children, even banning birth control for a time.”

 

Since the founding of the People’s Republic of China, the government has treated population planning as a cog in the planned economy. Citizens are regarded as units of consumption and production, and fertility is a tap that can be turned up and down as required to support economic growth.

During Mao’s reign, policies and propaganda directed citizens to have more children, even banning birth control for a time. But when overpopulation threatened China’s growth, a strict bottleneck in the form of One Child Policy was slapped into place.

Propaganda poster from 1950s, promoting bigger families.

In the thirty years since its implementation, the One Child Policy remains the largest experiment in social engineering the world has ever seen. The Chinese government claims that it has prevented 400 million births. But when faced with a rapidly aging population and a shrinking labor force with which to support it, the government did a swift about-face to rally for more babies.

 

People are not avoiding more children simply because they are too immature and too selfish.”

 

In the two years since China officially ended the One Child Policy, people have not eagerly embraced the new policy that allows them to have more children, and birth rates remain sluggish.

The leading explanations for this phenomenon focus on logistics; couples are faced with high cost of living, real estate prices, stressful work pressure, the exorbitant price of child care, and aging parents. While present economic conditions make it difficult for families to afford more children, this type of thinking falls prey to the notion that young Chinese people are what behavioral economist Richard Thaler calls Econs, beings who are able to make perfectly logical economic decisions without being influenced by idiosyncrasies that make up who they are.

True, another popular explanation blames the “little emperor effect” – the highly individualistic and self-centered disposition of those who grew up as the focal point of the entire family unit. But this paints a rather unflattering and reductive picture of the mentality of the One Child generation. People are not avoiding more children simply because they are too immature and too selfish.

To understand how many from the One Child generation understand family and parenthood, we must take into account how the One Child Policy made the single child family normative by erasing the experience of having siblings from the lives of millions.

 

None of my friends ever wished out loud that they have a sibling, and I certainly didn’t feel like there was something missing in my life.”

 

I was born in 1980s Beijing, and I was the only child of an only child. I had a happy, fulfilling childhood with many happy memories. I have no recollection of ever thinking it strange that every family only has one child. If anything, it was too mundane a detail to be considered, it would have been like thinking it strange that the sky was blue.

I did learn the concept of siblings through stories and cartoons, but they were fantasy, removed from my reality. Maybe a precocious child would have asked why there were so many stories about brothers and sisters and yet nobody has one of their own, but I was not that clever. After all, none of my friends ever wished out loud that they have a sibling, and I certainly didn’t feel like there was something missing in my life.

When I moved to the United States in third grade, I met children my age with siblings for the first time in my life, and over the next couple of decades, I learned much about the joys of having them. I even considered asking my mother if she’d have another child, though I never wanted it enough to ask.

I couldn’t really imagine living with a little brother or sister, I just knew that it would change everything. My husband has a little sister, and they are extremely close. Watching them interact sometimes feels like seeing another species with an additional vital organ I do not possess.

 

The One Child generation lack a deep emotional connection with the distinctive experience of having siblings.”

 

I’ve never felt like my life has been incomplete without siblings. My warm feelings towards the idea of having a sibling is that of a detached observer, markedly different from having the happy memories of growing up with siblings. When it comes to starting a family of my own, I feel inclined to reproduce when I loved about my childhood, and improve what I didn’t like, and I liked being the only child just fine.

Image: from classic story about two shepherd sisters, a story the author grew up on.

This, I think, is a mental state shared by many of my peers in China, and it keeps them from having any strong emotional engagement with the idea of having more than one child. As natural as it feels for people in most other countries to have more than one child, it feels natural for the One Child generation of China to have just one. They lack a deep emotional connection with the distinctive experience of having siblings to feel the strong need to bestow it upon their children.

This probably contributed to the strong backlash against the recent People’s Daily article “Giving Birth Is Family Business, But Also A National Issue” (“生娃是家事也是国事“), in which the author glibly noted that “(..) having kids has a special meaning for Chinese people. Not wanting to have kids is just a lifestyle of passively giving in to society’s pressures.” People often draw on the happy memories from when their youth to shape their present and future, and they would not appreciate being told their preferences is just them “passively giving into society’s pressures.”

 

What is normal and common for people in other countries is a great and terrifying unknown for couples in China.”

 

The frightening effectiveness of the One Child Policy is that it took just thirty-odd years for a generation to lose touch with something as normal as a multi-child household. Policies, incentives and punishments can work to a point, but it will take years before having more than one child is normalized once more in people’s hearts and minds.

For now, young couples can only use their existing knowledge to imagine what life is like with more than one offspring. Is it simply doubling the resources and energy required by one child? Is each additional child just the most exhausting game of multiplication in the world? It is no wonder that young couples are agitated and generally unenthused over the prospects of raising more than one child.

What is normal and common for people in other countries is a great and terrifying unknown for couples in China. And this anxiety would not be alleviated by propaganda that proclaim child birth as a civic duty, nor policies that reward childbirth and penalize childlessness.

What they need is to be reassured that additional children can be more than just a larger economic burden, that there’s an innumerable joy to be had too.

By Frankie Huang
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Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Frankie Huang is a writer and strategist living in Shanghai. She was born in Beijing and raised in New Jersey. Having lived all her life wedged between the proverbial East and West, she is interested in the ways globalization cross-pollinate cultures and lead to different new growths.

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China and Covid19

The Curious Case of the Henan Bank Depositors and the Changing Health QR Codes

“It must be American hackers who did this, right?”, some Weibo commenters wrote in light of the miraculously changing Health Codes.

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Where can people turn to once their money seems to have gone up in flames? How could Health Codes randomly turn from green to red? And who will stand up for justice? These are the questions asked by Chinese netizens in the Henan bank depositors case that is making headlines this week.

This week, the story of a Henan banking scandal and depositors’ Health Codes suddenly turning red triggered online discussions in China and even made international headlines.

In between online deposit products, financial platforms, regional banks, and Health Code systems, the story is a bit messy. Here, we’ll explain the story and its latest developments.

 

DUPED DEPOSITORS

 

The story starts in April of this year when people discovered that they were unable to withdraw money they had invested in online deposit products offered by various smaller regional banks.

Some people had deposited money via the Baidu money app (Du Xiaoman Financial 度小满), others had used another third-party platform, intermediaries, or one of the mini-programs run by the banks themselves.

By early May, it had become clear that dozens of depositors who once thought they had invested their money wisely had actually been duped. Four of the banks involved are located in Henan province, namely: the Yuzhou Xinminsheng Village Bank (禹州新民生村镇银行), Shangcai Huimin County Bank (上蔡惠民村镇银行), Zhecheng Huanghuai Community Bank (柘城黄淮村镇银行), and the Kaifeng New Oriental Country Bank (开封新东方村镇银行).

But there are also other smaller banks involved, including Guzhen Xinhuaihe Rural Bank (固镇新淮河村镇银行) and Yixian Xinhuaihe Rural Bank (黟县新淮河村镇银行) in Anhui.

As reported by South China Morning Post by late May, multiple customers had confirmed that they had not been able to withdraw funds either online or in person.

The sudden apparent closure of their withdrawal channels set off a wave of panic among depositors, who then protested in the provincial capital of Zhengzhou on May 23rd, demanding the return of their money.

Yang Huajun (杨华军), deputy director of the Henan branch of China’s Banking and Insurance Regulatory Commission (CBIRC), arrived at the scene of the protests and – speaking through a megaphone – promised the demonstrators that as long as their funds were “legally” deposited, they would be protected by law.

Many depositers, however, were unsure of whether or not their deposits were actually made in a “legal” way and what the definition of “legal” entailed in this case.

Over the past years, Chinese smaller rural banks have partnered with online platforms, often offering relatively high returns, in order to boost their deposit-reliant funding base.

In December of 2020, platforms Alipay, Du Xiaoman Financial, JD.com and Tencent Wealth Management all suspended the sale of online deposit products via their financial apps in light of heightened scrutiny from regulators concerning funds raised by unstable smaller lenders.

The smaller banks that are now at the center of the recent financial scandal then (illegally) reached out to their existing customers directly after December 2020 and convinced them to download the banks’ apps in order to deposit even more money.

One of the persons duped is Mr. Sun from Shenzhen. As reported by Sina Finance, it was in 2020 when Sun came across a seemingly attractive online saving product via the Du Xiaoman Financial app. Although Sun was not familiar with the banks in question, namely the Yuzhou Xinminsheng Village Bank and Shangcai Huimin County Bank, he could not resist the deposit interest rate of 4.6%, which was much better than what the big banks were offering at the time.

In early 2021, Mr. Sun received a text message from Yuzhou Xinminsheng Village Bank saying that although the financial products had been taken offline, users would still be able to deposit through the bank’s own online application. Mr. Sun ended up depositing his entire savings into the Henan-based rural bank, thousands of miles away from his own home.

And then, earlier this year, Sun came across the news that Henan New Wealth Group, the primary shareholder of all banks involved, was under investigation for fraudulous practices. When he opened up his online financial application, there was nothing to see but a notice that the system was under maintenance. Sun could no longer access his funds. Hundreds of other customers were seeing the same empty screens.

According to media reports, the current suspected scam case affects some 400,000 customers of seven local banks and involves a money sum of 40 billion yuan ($5,6 billion).

 

IN THE RED

 

As thousands of depositors have been fighting to recover their savings over the past two months, they were duped a second time earlier this week. Dozens of affected depositors claimed they had seen their Health Codes turn red without any logical reason on June 13 or June 14 – the day of a planned protest.

In China’s Covid era, the Health Code system has become a pivotal tool in the country’s battle to contain the spread of the virus. The Health Code system is embedded in various apps, most importantly in Wechat and Alipay, and uses various data to assess an individual’s exposure risk. There is not one unified national Health Code application; they are developed by different actors and their management is different across Chinese provinces and cities.

If there is no detected risk, an individual is assigned a Green QR Code and is allowed access into any venue or location where a QR code scan is mandatory. With a Yellow Code, you should stay home for a week, and Red Code means you are high risk and need to quarantine for 14 days – this severely limits your freedom to move around and travel.

On June 13th, many affected investors saw their Health Code turn red when arriving in Zhengzhou, where they were allegedly coming to retrieve their savings and protest the injustice they suffered. The QR code color change was unexpected and strange, considering that there were no new reported Covid cases in their vicinity and also considering the fact that accompanying family members who made the exact same journey did not see their Health Codes change.

This raised suspicions that the duped depositors were specifically targeted, and that their Health Codes were being manipulated by authorities.

CNN reported that many distributors who had come to Zhengzhou were taken to a guarded quarantine hotel before being sent back to their hometowns via train the next day. According to a Chinese media report by Nanfang Daily, the depositors were not even asked to do nucleic acid testing and were told by local staff that they would get their Green Code back as soon as they left Henan.

Various media report that minimally 200 depositors saw their Health Code change from Green to Red earlier this week.

 

“OPERATION CODE RED”

 

The curious case of the Henan depositors scandal and the changing Health Code colors has become a trending topic on Chinese social media this week.

The topic of the duped depositors was also discussed online before this week, and it brought back memories of earlier financial scandals, such as the P2P chaos that occurred back in 2018.

But the topic of depositors’ Health Codes changing to Red is something that attracted much wider discussions on the apparent abuse of a system that has now become a part of everyday life for people in China’s Covid era.

The main proof for people that the Henan depositors were targeted in this apparent “Operation Code Red” is that, as mentioned before, the family members that were traveling together with the duped depositors never saw a change in their Health Code: those people who were listed on the affected regional banks’ depositors list were seemingly singled out and purposely targeted.

“Who is in charge of changing the Health Code colors?” became a much-asked question on Weibo, with many blaming local Henan authorities for abusing their powers to try and stop protesters from raising their voices in Zhengzhou. One Weibo post on this issue received over 1,6 million views. Meanwhile, Henan authorities still said they did “not understand” what had happened.

“It must be American hackers who did this, right?”, some Weibo commenters wrote, putting in a sarcastically smiling emoji, with others adding: “No, the aliens did this – it must have been the aliens!”

Others wrote that the situation at hand should be simple to figure out: “There is no way that this is an oversight or a data error. If you want to know who did this, look at who or which department has the authority to manage both epidemic prevention measures as well as finance affairs.”

Many comments also showed a sense of disillusionment with how China’s Covid management affects the people: “After seeing the chaos during the Shanghai lockdown, this does not even surprise me anymore,” one person wrote on Weibo: “All we can do is pray that it won’t happen to us.”

“Why is Henan’s “messy Red Code” incident so extremely vile and scary? Because once a person or institution holding public power looks at you in a bad light, they can give you a Red Code and take you away, in the name of legality. This is the evil that comes from unmonitored power,” one blogger from Anhui wrote.

Other people also worried about foreign media reporting on this issue, saying this incident is being used to cast China in a bad light while local authorities are to blame: “We should unify the Health Code system into a national system in order to avoid this from happening again.”

According to Chinese state media reports, the case has now been forwarded to the Health Commission of Henan Province for further investigation.

We will keep tracking upcoming developments. Meanwhile, check out our other reports on trending topics relating to China’s banking and finance here. For more about Covid-related trending topics, check here.

By Manya Koetse
With contributions by Miranda Barnes

Image via Weibo

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References (all other sources included in hyperlinks)

Lee, Amanda. 2022. “Rural Banks Freeze Customers’ Accounts.” South China Morning Post, May 31.

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©2022 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China Digital

From Teacher to Livestreamer: Ecommerce Move is Game Changer for China’s New Oriental Education

New Oriental is going from classroom to e-commerce. Online shopping has never been more educational.

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After laying off 60,000 staff last year, Chinese private education company New Oriental is now offering unexpected new employment opportunities for teachers in the livestream market. Changing e-commerce channels into virtual classrooms, New Oriental has hit the sweet spot with Chinese netizens.

Last year, an unprecedented crackdown on China’s private education sector left many teachers unemployed and worried about their future.

China’s so-called ‘double reduction’ (双减) policy was announced in August of 2021 and targeted “excessive homework” and off-campus tutoring for students in the mandatory nine-year education system. The new regulations imposed strict sanctions on existing private education institutions, forcing them to register as non-profit organizations. Foreign investment in the private tutoring sector was also banned.

One of the companies that was hit particularly hard by this policy is New Oriental (新东方), the largest provider of private educational services in China. Following the crackdown, the company suffered huge losses and dismissed 60,000 employees.

Facing the new regulations, including the ban on for-profit tutoring in subjects on the school curriculum, New Oriental tried to keep its head above water by exploring new markets and ideas within the private education sector. For example, the company launched a special program to train parents on how to tutor their K-12 children themselves. New Oriental called it their “excellent parenting” (优质父母) training class.

Now, nearly a year later, another initiative by New Oriental has become an online hit. Inspired by the success of livestream e-commerce in China, the tutoring company started its own livestream channels. Although New Oriental already introduced its e-commerce business in late 2021, with founder Yu Minhong (俞敏洪) sometimes hosting the sessions himself, it had not been as much of an online success until it recently introduced bilingual livestream e-commerce sessions.

Now, tutors-turned-sellers are teaching viewers English – or sometimes other subjects – while selling (agricultural) products via the Douyin app. Whether they are selling fruit, rice, or even shrimp, New Oriental’s livestream hosts are grabbing every opportunity to teach their viewers a new word or concept, often using a whiteboard to introduce new vocabulary.

Whatever they’re selling, New Oriental’s livestream hosts make sure it’s educational.

One reason for New Oriental becoming a viral hit is because of Dong Yuhui (董宇辉), who is one of the experienced teachers now selling products online. Dong’s bilingual livestreams are particularly successful among viewers because of his enthusiasm, fluency in English, witty jokes, personal stories, and talent for singing.

Teacher Dong recently had a breakthrough moment with his June 10th livestream, during which he sold bags of rice using English. He has since attracted over nine million viewers. While thanking all viewers for their support in a recent Weibo post, Dong described himself as a “ordinary peasant boy.”

Dong Yuhui (董宇辉) is one of the livestreamers that have turned New Oriental’s e-commerce into a viral hit.

Besides Dong, there are also other popular hosts. English teachers Ming Ming, Yoyo, and Dun Dun are all loved by viewers for their charm and wit.

Although various kinds of social e-commerce categories are particularly popular in China, this new phenomenon of combining education + e-commerce + livestream is appreciated by many netizens who like to learn something while being entertained and perhaps also buying something. “I don’t know whether to place an order or to make notes,” has become a popular comment. Another commenter said: “As a kid I took your class, and now I buy your goods.”

Others say that they like the calm way in which the livestreams are presented, posing a stark contrast to other livestreams where the hosts are hyping up products and urging people to buy fast and buy more.

On June 15th, news came out that New Oriental’s stocks had surged by more than 25% following its livestreaming success.

Although some Weibo users predict that this is just a temporary trend, others think that the educational livestream model is here to stay: “New Oriental really started a new business venture, and I’m learning a lot through their livestream sessions.”

By Manya Koetse
With contributions by Miranda Barnes

Image via Weibo

Read related article: China’s Crackdown on Tutoring Schools: Concerned Parents and Teachers on Weibo

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©2022 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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