Last year, China’s birth rate fell to its lowest level since 1949, underscoring Beijing’s deepening demographic struggle even as officials introduced new subsidies to encourage couples to have more children.
Data released by the National Bureau of Statistics on Monday (January 19) showed that the number of births per 1,000 people fell to 5.6, the lowest level since at least the founding of the People’s Republic of China. The number of newborns dropped by 1.6 million, the largest increase since 2020, to 7.9 million.
The figure is a setback for President Xi Jinping’s campaign to promote a birth-friendly society that includes cash incentives for parents. The total population decreased by 3.4 million, the biggest drop since the Great Famine in 1960 under former leader Mao Zedong, to 1.405 billion.
A shrinking labor force and an aging population are major threats to the world’s second-largest economy. As the elderly population grows, the ratio of workers to retirees declines, putting greater pressure on the elderlyInsufficient fundspension system.
In response to these structural headwinds, the Chinese government has implemented a series of policies to encourage childbirth in recent years, from extending paternity leave to simplifying marriage registration.
Among the incentives, couples will receive about $500 per year for each child born on or after Jan. 1, 2025, until they turn 3 years old. Starting this year, the government will alsoimposedA 13% VAT is levied on contraceptive pills and contraceptive supplies (including morning-after pills and condoms).
Independent demographer He Yafu said the amount of government subsidies was “too small” to effectively increase the birth rate.
He attributed the decline to young people’s reluctance to marry and a decline in the number of women of childbearing age, which fell by 16 million between 2020 and 2025.
The decline in the number of potential mothers is partly the result of the one-child policy, which hollowed out the population base for future growth before it could be taken into account.scrapped2015.
This story was originally published on wealth network