The main cause of birth-rate decline, in any country as well as China, is due to natural changes in socio-economic factors, such as the labour market, prospects of financial stability, the housing...Show moreThe main cause of birth-rate decline, in any country as well as China, is due to natural changes in socio-economic factors, such as the labour market, prospects of financial stability, the housing market, the marriage market, a work-life balance, urbanization, affordable childcare and education of both men and women. The one-child policy might have assisted a fast-track through the stages of demographic transition, but the main reason for the current continuation of low fertility is caused by these socio-economic factors. To prove the legitimacy of this argument, even though there were no birth control policies set in place in Japan since the end of the Second World War, fertility still declined due to similar socio-economic circumstances as in China today. However, after Japanese policy makers started addressing some of the socio-economic factors, birth rates did ever so slightly improve since the low in 2005, further showing evidence of the importance of these determining factors. The argument that will be used in this paper to answer the research question “Why did Chinese policymakers drop the one-child policy and how effective is this policy move in reversing the demographic trends?” is as follows: The one-child policy was fully dropped as policy makers finally realized, while too late due to the opaqueness of the Chinese government, that the fertility rates were socially and economically unsustainable. The effect of the implemented policies in reversing the demographic trend is weak because the socio-economic factors which determine continuous low fertility are not addressed.Show less