China | China's northwest links fertility with personal credit
Three is just one too many. Photo: iStock/Getty Images
Three is just one too many. Photo: iStock/Getty Images

Death, taxes... & too many babies

China's northwest region will restrict families who breach the two-child policy by putting up obstacles on employment, bank loans and insurance

November 3, 2016 4:24 PM (UTC+8)

A region in China’s northwest will restrict families who breach the two-child policy by putting up obstacles on employment, securing bank loans and buying insurance.

The Ningxia Hui Autonomous Region issued a regulation that listed a number of areas where residents would be deprived of benefits or access to credit among other things if they fail to pay a penalty for having third child.

“Ningxia government will strictly investigate and strongly discipline couples who give birth to more than two children,” the regulation stated.

The municipal government of the region’s capital Yinchuan released guidelines on the implementation of the two-child policy on Thursday on its website.

This reaffirms the decision made by the Communist Party of China that “all couples nationwide can give birth to two children” during the central committee meeting in October 2015, which was later passed by the National People’s Congress as a new law to replace the one-child policy that had been enforced since 1979.

The new law also states that if this policy is breached an administrative penalty must be paid.

If the administrative penalty is not paid in time this is recorded on the personal social credit system that could prevent a person from access to credit or loans, the Ningxia regulation said.

The relaxation of the one-child policy is considered a signal that China will encourage an increase in the fertility rate to address the problem of a soaring aging population.

The Ningxia government’s new regulation may dampen people’s expectations in China of having the freedom to choose how many children they have.

The personal social credit system record will be used as a reference when citizens in Ningxia apply for bank loans, buy insurance, seek a job, act as a guarantor and even renting a home.

But the regulation also said there would be an outright ban on a correlation between having a third child and the right to gain local residency, and kindergarten and education admission.

Strong terms are used in the document, aiming to interpret the central government’s “two-child” policy as a “two-child-only” edict.

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