In an unprecedented initiative to try to reverse the fall in population indicators, the China announced the creation of a National Program has birth. The intention is to offer a financial support to families willing to have a son or more.
The measure, announced by the state news agency Xinhua, marks a significant step in the Chinese government’s efforts to reformulate its demographic policy and thus stimulate population growth.
From this year, eligible families will receive 3,600 yuans (about $ 503 or $ 2,870) annually to each child under three years.
The average number of children per woman – which was 7.5 in 1963 – fell to the level of 2 in the 1970s and maintained the trajectory of gradual fall in the following decades. In 2023, for the first time it was below 1: 0.999, according to World Bank data.
According to the Xinhua state agency, families who have received the funds will have income tax exemption and the amount will not be considered as income for qualification on other social benefits, such as housing allowance or care programs for families in extreme difficulty.
China’s decision to introduce a national subsidy to encourage birth was an old expectation of demographic experts and reflects a growing concern with their demography.
China country has faced a sharp drop in birth rate, reaching historical minimums in recent years.
The birth control policies of the past, especially the policy of the only child, have created a unique scenario for birth over the last decades.
More recently, the increase in living costs, especially in urban centers, and the focus of young professionals in training and careers have reinforced the scenario where many families choose to have fewer children or postpone maternity and paternity.
There is concern that this drop in birth generates population decline, which could slow down economic growth and create pressures about the country’s ability to maintain its global competitiveness in the future.
This new subsidy program is not Beijing’s first initiative to encourage the birth of babies.
In recent years, Beijing had already flexed the policy of the only child, allowing families to have even more children. In addition, other support measures have been introduced, such as increasing maternity and paternity licenses and offering more affordable day care centers services.
