China plans nationwide cash subsidies to encourage births amid declining population
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China is preparing to introduce financial incentives for families in a bid to combat its rapidly declining birthrate, which threatens long-term economic growth and labor force sustainability.
According to sources familiar with the initiative, the government is expected to offer an annual payment of 3,600 yuan (approximately $503) for each child born on or after January 1, 2024, until the child reaches the age of three.
While the plan has not been publicly confirmed, and the State Council Information Office has yet to respond to requests for comment, insiders say the move is part of a broader nationwide effort to address the country’s demographic crisis.
Despite scrapping its one-child policy nearly a decade ago, China’s population has been in steady decline, recording three consecutive years of shrinking numbers through 2024.
Births in 2023 totaled just 9.54 million—half of the 18.8 million births registered in 2016, the year China formally ended the restrictive policy.
The sharp drop in new births is already having economic consequences.
With a shrinking working-age population, China faces serious concerns around labor shortages and diminished productivity. United Nations projections suggest that China’s population could fall to 1.3 billion by 2050 and dip below 800 million by the end of this century.
Much of the decline is tied to a record-low marriage rate, which has fallen to levels not seen in nearly 50 years. Experts warn this trend could further dampen birth rates in the years ahead.
In response to the crisis, several regional governments have already implemented their own incentives.
These include cash handouts and housing subsidies to support families financially and encourage childbirth. In March, the city of Hohhot in Inner Mongolia drew national attention by offering 50,000 yuan to families having a second child and 100,000 yuan for a third or additional children.
The planned national subsidy program appears to follow this model, signaling a more aggressive, centralised approach to reversing demographic decline.