Due to the ongoing decline in birth rates, the Chinese government is implementing a new financial program aimed at increasing the population. This was reported by one of the country’s leading news agencies — Xinhua.
According to the report, the state will annually provide a payment of 3,600 yuan (approximately 500 US dollars) to families with children under the age of 3. These funds are intended for children born between 2022 and 2024 and are expected to cover up to 20 million families.
According to official figures, 9.5 million babies were born in China in 2024. This figure is nearly half compared to 2017. The government is now introducing a program similar to “maternal capital” to counter this decline.
Economist Zhichun Huang notes that these benefits may not significantly impact birth rates or domestic consumption in the short term. However, this initiative represents a turning point in direct financial support to the population and could pave the way for an increase in budget transfers in the future.
It is known that from 1979 to 2015, China adhered to the “one family — one child” policy. In rural areas, families with two children were deprived of social benefits. Now, however, the government is instead trying to support families with more children.
These measures aim to prevent a demographic crisis and ensure the country’s future labor resources.
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