China Cuts Condom Tax to Zero in Bid for More Babies

China has removed a 13% sales tax on condoms and other contraceptives. The change took effect on January 1. At the same time, the government made childcare services completely tax-exempt. These moves are part of a national strategy to address a declining birth rate. By making contraceptives cheaper and childcare more affordable, officials hope to encourage families to have more children. The policy shift highlights the serious demographic challenges facing the world's second-largest economy. China's population is aging and shrinking, a trend that threatens future economic growth.