China's birth rate crisis has prompted the government to offer parents significant financial incentives to encourage larger families.
China Launches $1,500 Incentive Program to Encourage Births
China Launches $1,500 Incentive Program to Encourage Births
In a bid to address declining birth rates, the Chinese government introduces a nationwide subsidy for families.
The article text:
In a bid to counter declining birth rates, China has announced a nationwide subsidy program, offering parents 3,600 yuan (approximately $500) per year for each child under the age of three. This initiative is the first of its kind aimed at enhancing the country's birth rates, which have been decreasing despite the Communist Party's abolishment of the one-child policy almost ten years ago.
The handouts are expected to benefit around 20 million families, according to state media reports, helping alleviate the financial burden of raising children. The scheme, introduced earlier this week, aims to provide parents with a total of up to 10,800 yuan per child and will be retroactively applied from the beginning of this year, as noted by state broadcaster CCTV. Families with children born between 2022 and 2024 are also eligible to apply for partial subsidies.
This new policy comes in the wake of various local initiatives aimed at boosting birth rates, including an earlier program in Hohhot which offered residents up to 100,000 yuan for families with at least three children. Additionally, Shenyang has provided 500 yuan a month to local families with a third child under three years. Last week, the central government also encouraged local authorities to prepare plans for free preschool education, an essential consideration in a country noted for its high child-rearing costs.
According to a study by the China-based YuWa Population Research Institute, raising a child to the age of 17 in China can cost an average of $75,700, positioning the nation among the world's most expensive environments for child-rearing.
Official statistics revealed that China's population had decreased for the third consecutive year, with only 9.54 million babies born in 2024, marking a slight rise from the previous year, though the overall population continues to decline. China's demographic challenges are compounded by a rapidly aging population, heightening concerns for Beijing's leadership regarding future economic stability and growth.
In a bid to counter declining birth rates, China has announced a nationwide subsidy program, offering parents 3,600 yuan (approximately $500) per year for each child under the age of three. This initiative is the first of its kind aimed at enhancing the country's birth rates, which have been decreasing despite the Communist Party's abolishment of the one-child policy almost ten years ago.
The handouts are expected to benefit around 20 million families, according to state media reports, helping alleviate the financial burden of raising children. The scheme, introduced earlier this week, aims to provide parents with a total of up to 10,800 yuan per child and will be retroactively applied from the beginning of this year, as noted by state broadcaster CCTV. Families with children born between 2022 and 2024 are also eligible to apply for partial subsidies.
This new policy comes in the wake of various local initiatives aimed at boosting birth rates, including an earlier program in Hohhot which offered residents up to 100,000 yuan for families with at least three children. Additionally, Shenyang has provided 500 yuan a month to local families with a third child under three years. Last week, the central government also encouraged local authorities to prepare plans for free preschool education, an essential consideration in a country noted for its high child-rearing costs.
According to a study by the China-based YuWa Population Research Institute, raising a child to the age of 17 in China can cost an average of $75,700, positioning the nation among the world's most expensive environments for child-rearing.
Official statistics revealed that China's population had decreased for the third consecutive year, with only 9.54 million babies born in 2024, marking a slight rise from the previous year, though the overall population continues to decline. China's demographic challenges are compounded by a rapidly aging population, heightening concerns for Beijing's leadership regarding future economic stability and growth.
