China Introduces Subsidies for Families to Increase Birth Rate

• China introduces subsidies of 500 dollars per child for up to three years.
• The population of China continues to decline for the third consecutive year.
• Many regions are already offering financial support for families.

The Chinese government announced the introduction of subsidies for parents in the amount of 3600 yuan (approximately 500 US dollars) for each child under the age of three per year. This decision was publicized on Monday by Chinese state media Xinhua.

China is facing a declining population for three consecutive years, which has led to a demographic crisis. In 2024, only 9.54 million newborns are expected to be registered in the country, which is half as many as in 2016, when the one-child policy was abolished.

Additionally, the marriage rate has also reached record lows, as young couples are delaying childbirth due to high costs of raising children and career constraints.

Regions Stimulating Birth Rate

More than 20 administrative regions at the provincial level have already implemented subsidy programs to support the birth rate. For example, in Huhhot, the capital of Inner Mongolia, it has been announced to pay up to 100,000 yuan for each newborn child for families that have three or more children.

In the city of Shenyang, located in the northeast Liaoning province, local authorities are providing 500 yuan per month for families that have a third child, until the child reaches three years of age.

Proposals for increasing the birth rate also include extending maternity leave from 60 to 150 days in the province of Sichuan.

Limited Impact of New Measures

Analysts note that while the subsidies are a positive step, they are insufficient to change the situation regarding the birth rate or to stimulate internal consumption. Economists believe that these measures could become the basis for future financial transfers, but their impact on the birth rate will be limited.

Some young parents, such as a 36-year-old mother from Beijing, acknowledge that financial pressure may hinder decisions about having a second child, despite the new subsidies.

Tags: China/Well-being