China Begs Parents to Give Birth to More Children, Offers Them $1,500
- China introduced its first national child subsidy, offering families ¥3,600 (£375; $500) annually per child under three, to counter falling birth rates
- Eligible parents may receive up to ¥10,800 (£1,125; $1,500) per child over three years, amid concerns that the country’s ageing population is shrinking the workforce
- Experts warn the financial aid may be insufficient, as a study shows it costs an average of $75,700 to raise a child in China to age 17
In a bid to reverse its declining birth rate, China has launched its first nationwide subsidy for families with young children.
Under the new scheme, parents will receive 3,600 yuan (around £375 or $500) each year for every child under the age of three.
Source: Getty Images
The move, announced by state broadcaster CCTV on Monday, July 28, is the government’s latest effort to ease the financial burden of raising children and encourage larger families.
Eligible families could receive up to 10,800 yuan (£1,125; $1,500) per child over three years.
A spokesperson for China’s National Health Commission said:
“This handout will benefit around 20 million families and support our goal of stabilising population growth."
China: Falling birth rates raise alarm
Despite ending its controversial one-child policy nearly a decade ago, China has struggled to boost its birth rate, BBC Pidgin reported.
Official figures from the National Bureau of Statistics show that only 9.54 million babies were born in 2024, a slight increase from 2023, but not enough to stop the overall population decline.
China’s population has now fallen for the third year in a row. The country’s 1.4 billion people are ageing rapidly, raising fears about the future size of the workforce and the long-term health of the economy.
“The demographic crisis is real and worsening. Young couples are not just having fewer children, they are choosing not to have any at all," said Professor Liu Ming, a population expert in Shanghai.
China: Local governments already testing incentives
Several provinces had already introduced their own child subsidy programmes before the national rollout. In March, the city of Hohhot offered couples with at least three children up to 100,000 yuan (£10,400) per baby.
In Shenyang, located northeast of Beijing, families with a third child under the age of three receive 500 yuan a month.
Other regions have focused on supporting childcare services, including proposals for free preschool education.
The national plan announced this week also applies retroactively to children born since 1 January 2024. Families with children born between 2022 and 2024 can apply for partial subsidies.
Raising children in China remains costly, study says
Source: Getty Images
While these measures may help, many believe they are not enough. A recent study by the YuWa Population Research Institute found that raising a child to the age of 17 in China costs an average of $75,700, making the country one of the most expensive places in the world to raise children, relative to income.
“This is a step in the right direction. But unless more is done to reduce the cost of housing, education, and healthcare, many of us will still think twice before having another child," said Huang Wei, a father of two in Guangzhou.
Beijing calls for further action
In addition to the cash incentives, the central government has urged local authorities to come up with plans for expanding affordable preschool education and improving work-life balance for parents.
As China faces growing pressure to address its demographic challenges, the new subsidy may signal the beginning of more aggressive policy shifts.
Nigeria, China sign deal to reduce dollar dependence
Previously, Legit.ng reported that the Nigeria-China Strategic Partnership has disclosed that Nigeria would soon ink a deal on Digital RMB with China to allow a direct conversion of naira to Chinese Yuan.
The digital renminbi (RMB) is a central bank digital currency issued by the Chinese apex bank, the People’s Bank of China.
Source: Legit.ng
