China has introduced significant financial incentives to combat its ongoing population decline. In a bid to reverse the trend, local governments are providing wedding subsidies, housing grants, and generous child-rearing allowances.
In Zhejiang province, wedding vouchers worth up to 1,000 yuan (£100) are being offered, with cities like Ningbo and Hangzhou making the subsidies available on a first-come, first-served basis.
Some regions have gone even further, gaining the title of “baby cities.” Tianmen, in Hubei province, is at the forefront of these efforts. This city has seen a remarkable 17% increase in births this year.
Families with three children in Tianmen are now eligible for up to 220,000 yuan (£23,000) in subsidies and housing benefits, making it one of the most generous support packages in China.
The country’s population crisis is linked to its former one-child policy, which lasted for 35 years. This policy has resulted in a rapidly aging population, a shrinking workforce, and a significant gender imbalance, with approximately 40 million more men than women. Although the policy was officially ended in 2015, the birth rate has continued to decline.
Young women, particularly university students, remain hesitant to have children. Surveys show that nearly 40% of female students are not interested in having kids, citing high living costs, pressure in the workplace, economic uncertainty, and the responsibility of caring for aging parents.
In response, Beijing launched a national child benefit this year, providing 3,600 yuan (£380) annually for each child under three. However, local governments are primarily responsible for implementing measures to boost births, leading to inconsistent policies and, in some cases, intrusive actions.
In certain provinces, women have reported receiving unwanted calls from officials inquiring about their menstrual cycles and plans for pregnancy.
To address the issue, some regions are focusing more on marriage incentives. Tianmen, for example, offers a 120,000-yuan housing subsidy, enhanced maternity benefits, and a 60,000-yuan marriage bonus to couples who register their marriages locally.
Additionally, China has lifted restrictions that previously required couples to marry only in their registered hometowns.
Despite these efforts, marriage rates continue to decline. In 2024, China recorded only 6.1 million marriages, a decrease from 7.7 million the previous year and over 13 million a decade ago.
As these policies unfold, President Xi Jinping is expected to closely monitor the costs and effectiveness of the programs. However, it remains uncertain whether financial incentives alone can alter the country’s declining birth rate or shift the attitudes of younger generations.
