China Unveils $1,500 Birth Incentive to Combat Declining Birthrates

Sun Sep 14 2025 00:11:42 GMT+0300 (Eastern European Summer Time)

China is instituting a nationwide subsidy of $1,500 per child under three as part of its efforts to address falling birth rates.

In a bid to reverse its declining birth rate, China has announced its first nationwide financial incentive program, offering parents 3,600 yuan (£375; $500) annually for each child under the age of three. This initiative comes after years of declining births since the ruling Communist Party lifted its long-standing one-child policy nearly a decade ago. The program, which was revealed on Monday, aims to support approximately 20 million families in managing the expenses associated with raising children amidst a looming demographic crisis.

Parents can receive up to 10,800 yuan per child, with the policy effective retroactively from January 2024. Families who welcomed children between 2022 and 2024 are also eligible for partial subsidies. Previous regional programs have tested similar measures, such as Hohhot, which offers up to 100,000 yuan for couples with more than three children, and Shenyang, providing 500 yuan per month for third children under three. Additionally, Beijing is promoting free preschool education to further alleviate financial burdens.

With raising a child to age 17 costing an average of $75,700, according to the YuWa Population Research Institute, the financial assistance aims to incentivize larger families. Recent statistics show that China’s birth rate is continuing to decline, with 9.54 million births recorded in 2024, indicating a slight increase, yet the population as a whole is aging rapidly, intensifying the urgency for demographic reforms.