China has one of the highest rates of caesarean delivery in the world. Of the 16 million babies born in 2010, approximately half were by caesarean, with 107 330 in Shanghai alone. 1 Understanding the reasons underlying this practice preference in China may provide insight into factors influencing caesarean rates in other countries.After the 1949 Communist revolution in China, national health policy emphasised public health. Health care was centrally planned, and focused on the provision of preventive care, vaccination, and basic medical care to a predominantly rural Chinese population. Obstetric care provided basic prenatal care and prevention of complications of pre-eclampsia, perinatal infections, and postpartum haemorrhage through the training of birth attendants.China's population grew to nearly 1 billion by 1978. Fears of over-population prompted the 'later, longer, fewer' campaign, which decreased total fertility rates from 5.8 to 2.7. 2 In 1979 the 'One Child Family' policy limited Han couples (the majority ethnic group) to a single child.In the 1980s, China's economy evolved from a socialist model to a state-controlled market economy, which grew at over 9% each year for decades, accompanied by the increasing urbanisation of the population. The centralized commune healthcare system was dismantled and replaced with a decentralised fee-for-service model that left most Chinese poorly insured. By 2002, 81% of the rural poor had no healthcare coverage, and out-of-pocket expenses that were 20% in 1979 rose to 58% by 2002. To offset reduced government healthcare spending, hospitals were allowed to increase fees and mark-up charges on medications, changes that resulted in increased costs of care, misuse of services, and the over-prescription of medications. 3