In a significant move to combat its declining birth rate, China is offering parents a substantial financial incentive of 3,600 yuan (approximately $500) annually for each child under the age of three. This program represents the government's first nationwide effort to increase birth rates since the abolishment of its one-child policy nearly a decade ago. According to state media, an estimated 20 million families stand to benefit from these subsidies, addressing the financial concerns surrounding childbirth and child-rearing.
The comprehensive scheme, which was revealed on Monday, allows parents to claim up to 10,800 yuan (around $1,500) per child. Importantly, the policy will be retroactively effective from the beginning of this year, giving families with children born between 2022 and 2024 the opportunity for partial reimbursement.
Local governments have already initiated various schemes aimed at boosting birth rates. In the northern city of Hohhot, couples with three or more children can receive up to 100,000 yuan, while Shenyang is providing 500 yuan monthly to families with a third child under three years of age. Beijing has also pushed for the implementation of free preschool education as part of broader efforts to support parents.
Adding to the pressing urgency, a recent study revealed that raising a child until the age of 17 costs about $75,700 in China, making it one of the most expensive countries for child-rearing in relative terms. This financial burden coincides with official figures indicating that China's population has decreased for the third consecutive year, with only 9.54 million babies born in 2024.
Despite a slight increase from the prior year, the overall population has continued to decline, raising alarms as the country's 1.4 billion residents age rapidly, amplifying concerns for future demographic stability.
