China Offers Cash for Babies: Offers $500 a Year Per Child to Reverse the Birthrate Crisis

China continues to see record-low birth numbers.

A National Push to Boost Births

China has launched its first nationwide program to incentivize childbirth.

Parents will now receive 3,600 yuan (around $500) per year for every child under age three, a bold step aimed at halting the country’s declining birthrate.

Why the Panic? A Shrinking Nation

Despite scrapping the infamous one-child policy nearly a decade ago, China continues to see record-low birth numbers.

In 2024, only 9.54 million children were born, a minor uptick from 2023, but not enough to counter the population’s overall decline.

Who Benefits from the New Subsidy?

Roughly 20 million families are expected to qualify for the new allowance, which totals up to 10,800 yuan (about $1,500) per child over three years.

Even parents of children born in 2022, 2023, or 2024 can apply retroactively for partial support.

Beijing’s Message: Have More Kids

The policy reflects the Chinese government’s deepening concern over demographic shifts.

With an aging population and declining workforce, leaders are scrambling to make parenthood more financially viable in one of the most expensive child-rearing countries in the world.

Local Trials Paved the Way

Before this national scheme, several Chinese cities had already begun experimenting with cash bonuses.

Hohhot, in Inner Mongolia, made headlines for offering up to 100,000 yuan per child, but only for families with three children.

Shenyang provides 500 yuan monthly to families with a third child under three.

Raising Kids in China? Not Cheap

According to the YuWa Demographic Research Institute, the cost of raising a child in China until age 17 is an eye-watering $75,700.

Relative to income, it’s one of the most expensive places on Earth to have children, which explains why many couples are still opting out of parenthood.

From One-Child to Three, But No Baby Boom

Despite relaxing birth restrictions, first to two children, then three, the Chinese government has struggled to motivate young couples to grow their families.

Economic pressure, demanding work culture, and housing costs have all contributed to the resistance.

India Surpasses China in Population

The stakes are even higher now that China has lost its status as the world’s most populous country.

India officially overtook China in 2023, a symbolic blow that underscores the urgency of China’s demographic dilemma.