It remains to be seen whether the modest success of pro-natal measures in Hubei Province’s Tianmen can be replicated nationwide.
China plans to introduce new nationwide cash incentives for families with newborn babies in an effort to boost the country’s declining birth rate and ensure long-term economic growth.Why It Matters
China ended its decades-long one-child policy in 2016, but the country’s fertility rate continued to decline for seven years, despite a raft of government policies. Officials fear that the demographic shift could have wide-ranging effects on the world’s second-largest economy in the years to come.
While the fertility rate last year bucked the trend, ticking upward to 1.2 births per woman from 1.0 in 2023, this was still well below the replacement rate of 2.1. Meanwhile, the population shrank for a third year, raising official concerns about the impact of these demographic shifts on China’s economy and global position.What To Know
Under a new nationwide policy, central authorities will offer families a cash allowance of 3,600 yuan (about $500 USD) per year for each child born on or after January 1, 2025, Bloomberg reported, citing people familiar with the matter.
