China is offering annual subsidies of 3,600 yuan ($500) per child under the age of three in a bid to address its worsening demographic crisis. After three consecutive years of population decline and a dramatic drop in births—only 9.54 million in 2024, half the number in 2016—the government is ramping up efforts to encourage families to have more children. The steep decline follows decades of the now-defunct one-child policy, which has left lasting effects on the population structure.
China’s Provinces Introduce Incentives to Boost Birth Rates and Support Families
Marriage rates are also at a record low, with many young couples postponing parenthood due to high child-rearing costs and career concerns. In response, over 20 provinces across China have implemented local measures to incentivize childbirth. For instance, Hohhot in Inner Mongolia offers families with three or more children up to 100,000 yuan for each additional baby. Similarly, Shenyang provides a monthly stipend of 500 yuan for third children until they turn three.
Some provinces are going further to foster a more family-friendly environment. Sichuan, for example, is considering increasing marriage leave from 5 to 25 days and extending maternity leave from 60 to 150 days. These measures aim to support couples both financially and socially in their parenting journey.
Experts Welcome China’s Subsidy Move but Question Its Impact on Birth Rates
Experts acknowledge the subsidy program as a positive policy shift. Zhiwei Zhang from Pinpoint Asset Management notes it reflects a growing recognition of the economic threat posed by declining fertility. Zichun Huang from Capital Economics called the move a “major milestone” in direct household support. However, he cautioned that the subsidy amounts are too modest to significantly influence birth rates or boost consumption in the short term.
Public sentiment remains cautious. While some see the aid as helpful, many, like 36-year-old mother Wang Xue, believe the financial burden of raising multiple children remains too high despite the new measures.
Summary:
China is offering annual subsidies to parents with young children to combat declining birth rates and a growing demographic crisis. Over 20 provinces introduced incentives like cash bonuses and extended leaves. While experts see this as a positive shift, many believe the measures are too modest to drive significant change.
