FazTimes media: Beijing— China is getting ready for a big change in its policies, which could be a major step in history. The country is planning to offer financial help across the nation to encourage families to have more children. The move comes as China faces a serious problem with its population numbers, which could affect its economy and the workforce in the future. Sources close to the situation say the government is likely to give a yearly bonus of 3,600 yuan (about $503) for each child born on or after January 1, 2024, and this support will last until the child is three years old.

Although this hasn't been officially announced yet, it's considered the strongest effort so far to address the drop in birth rates since the one-child policy was ended many years ago. Li Xiaopeng, a demographer at Peking University, said, “This shows a new phase in China’s family planning policies.

The Depth of China’s Demographic Challenge

China's population has been getting smaller for three years in a row. In 2023, there were only 9.54 million babies born, which is a big drop from 18.8 million in 2016 when China officially ended its one-child policy. Even though the country lifted birth limits and now allows families to have up to three children, there hasn't been a big increase in new births.

This means China is facing one of the fastest population declines in the world, only slightly slower than Japan.

The United Nations says China's population might go down to 1.3 billion by 2050 and could even drop below 800 million by the end of the century if things keep going this way. According to BBC News, many young Chinese couples are choosing not to have children because of financial stress, high housing prices, and difficulty balancing work and family life.

The problem is made worse by the very low birth rate.

Some local governments have started trying new ways to encourage more babies by offering financial help and better family support. For example:

In Hohhot, Inner Mongolia, the local government gave 50,000 yuan ($7,000) to families who had a second child and 100,000 yuan ($14,000) for a third or more child this year.
The Shenzhen city government offers help with housing and extra money for mothers during childbirth.

Cities like Jilin and Nanchang provide free help with having babies and a longer time off work for parents.

These local efforts are acting like a test to see what works best. Now, Beijing is moving to create a bigger, nationwide plan that includes all these benefits across the country.

What Does the Plan Look Like?

According to reports from Bloomberg and some Chinese policy experts, there's a new national subsidy program that would give 3,600 yuan each year per child during the first three years of life. While this amount isn't very high compared to other countries, it's considered a meaningful and useful step to help families afford the cost of raising kids.

If this plan goes ahead, the money would go straight to families, possibly through digital wallets or social insurance accounts. It might also come with other supports like tax breaks, better childcare options, and longer time off for parents when a child is born.

Wang Ling, a working mom in Shanghai, said, “It’s a wonderful start, but there’s still a lot more that needs to be done. The real issues are childcare, education expenses, and the work culture, not just the cost of living.”

Why Is This So Urgent?

The effects of a smaller population on the economy are very serious. The population of working-age individuals in China, defined as those between 15 and 64 years old, is already decreasing. This group is key to driving China's manufacturing, new ideas, and consumer market.

Al Jazeera reports that experts are worried. If birth rates don't go up, China could face a long period of lower productivity, slow economic growth, and higher costs for taking care of older people.

In fact, for the first time in many years, India has now become the most populous country in the world, surpassing China in 2024.

This shows a big change in population trends across Asia. Due to a decline in the number of young people entering the workforce, there is already a shortage of workers in factories and service jobs. Also, the system that supports retired people is getting more stressed. We expect more than 280 million people to benefit by 2035.

Will It Work?

The main question is whether giving out cash alone can change long-standing social and economic patterns.

In places like South Korea and Japan, past attempts with big financial incentives have had only small results.

Dr. Lian Wei, a sociologist at Tsinghua University, explains, “The drop in birth rates isn’t just because of cost. It’s also about changing values, people marrying later, and the stress of city life.”

In big cities in China, younger people are more focused on their careers, personal freedom, and living well.

Some are even choosing not to have kids at all, a lifestyle called “double-income, no kids,” or DINK. At the same time, the government is trying to encourage traditional family values through advertisements and events, pushing couples to get married and have children earlier.

Broader Implications: Global Echoes

The world is closely monitoring China's changing population situation and its response. Since China is one of the biggest economies and labor markets, changes in its population can affect global supply chains, where goods are made and shipped, how money is invested, and where people move from one country to another.

The Economist recently wrote that China's success in dealing with its population drop will play a big role in shaping the future of the global economy. Other Asian countries, like Vietnam, Thailand, and Malaysia, are also facing declining birth rates.

This has led to conversations about whether a new way of growing the economy—one that doesn't rely as much on having more people—is possible.

Conclusion: A Step Forward or Too Little, Too Late?

China's plan to offer child subsidies across the country is a major policy change that shows how serious the country is about its population problem. It shows an understanding of the tough situations families face, especially in big cities, where high costs and long work hours make having kids harder.

But experts say that just giving money isn't enough. They argue that real change needs more than that—things like cheap childcare, flexible work hours, equal opportunities for men and women, and beneficial education support are also needed.

Right now, whether this plan works will depend not just on how much money is given, but also on whether the government can create a system where raising a child feels less like a struggle and more like something everyone in society agrees on. As the world observes, China is at a pivotal juncture in its demographic history, and its actions today could significantly influence the country's future for many years to come.

At FazTimes, we prioritize accuracy, confidence, and strong journalistic standards. We ensure every news story we share is real by verifying it with multiple trustworthy and independent sources.

We’ve compared this report with coverage from major news outlets around the world, including BBC News, Reuters, Bloomberg, South China Morning Post, Al Jazeera, NDTV, The Economic Times, and The Indian Express.

We are dedicated to maintaining the highest standards in global journalism so our readers can rely on the information they get.

Related Stories

India Eats More Eggs Than Neighbors, Still Lags Global Average

Top 10 Countries with Best Work-Life Balance in 2025: Global Rankings

Shefali Jariwala's Death Sparks Anti-Aging Treatment Safety Debate

Abu Dhabi's First Night Beach Opens on Hudayriyat Island

New Protein Discovery: Halting Cancer & Slowing Aging

Fugitives Lalit Modi & Vijay Mallya Sing "My Way" at London Party